103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4655

 

Introduced 2/6/2024, by Rep. Martin J. Moylan

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Creates the Megaproject Sports and Entertainment Facility Admission Tax Act. Imposes a tax of $3 for each individual admitted to a sports and entertainment facility located on megaproject property. Contains provisions concerning the distribution of the proceeds of the tax. Amends the Property Tax Code. Provides that certain property may be certified by the Department of Revenue as containing a megaproject. Provides that a "megaproject" is a project with respect to which a company makes a specified investment during a specified investment period. Provides that the Department of Revenue may issue a megaproject certificate only for a megaproject in the Village of Arlington Heights. Provides that the megaproject property is eligible for an assessment freeze. Provides that megaproject property may be granted an abatement. Provides that a company that operates a megaproject shall enter into an agreement with the municipality in which the project is located to make certain special payments. Creates the Arlington Megaproject Oversight Board. Provides that the incentive agreement must be approved by resolution of the Arlington Megaproject Oversight Board. Amends the State Finance Act making conforming changes. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or operation of a megaproject is exempt from the taxes imposed under those Acts. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Hotel Operators' Occupation Tax Act, and the Liquor Control Act of 1934. Provides that certain tax proceeds from megaproject property shall be deposited into the Arlington Megaproject Infrastructure Fund. Makes other changes. Effective June 1, 2024.


LRB103 36446 HLH 67754 b

 

 

A BILL FOR

 

HB4655LRB103 36446 HLH 67754 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Megaproject Sports and Entertainment Facility Admission Tax
6Act.
 
7    Section 5. Definitions. As used in this Act:
8    "Department" means the Department of Revenue.
9    "Megaproject property" means property covered by a
10megaproject certificate issued pursuant to Division 22 of
11Article 10 of the Property Tax Code.
12    "Owner" means the owner of a sports and entertainment
13facility located on megaproject property.
14    "Person" means any individual, partnership, corporation,
15association, governmental subdivision, or public or private
16organization.
17    "Sports and entertainment facility" means a stadium,
18arena, or other similar structure for the holding of athletic
19contests and other events and gatherings, including, but not
20limited to, the following: baseball events, football events,
21and automobile racing; musical, dramatic, and other artistic,
22cultural, or social events; public meetings; and other public
23events.
 

 

 

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1    Section 10. Tax imposed. Beginning on the first day of the
2first month to occur not less than 60 days after the Department
3issues a megaproject certificate pursuant to Division 22 of
4Article 10 of the Property Tax Code and continuing through the
5last day of the calendar month in which the incentive period
6expires, as defined in Section 10-910 of the Property Tax
7Code, a tax is imposed upon admission to a sports and
8entertainment facility located on the megaproject property.
9The rate of the tax under this Act is $3 for each individual
10admitted to the sports and entertainment facility. The owner
11shall collect and remit the tax imposed under this Act. The tax
12under this Act shall be paid on a per-admission basis, except
13that an individual who exits a sports and entertainment
14facility and reenters that sports and entertainment facility
15on the same day shall be subject only to the initial admission
16tax. The Department may issue tax-free passes to agents of the
17owner, employees of the owner, and other persons who provide
18goods and services at the sports and entertainment facility
19pursuant to a contract or agreement with the owner. Those
20tax-free passes shall allow those individuals to access the
21sports and entertainment facility without incurring the tax
22imposed under this Act.
 
23    Section 15. Returns.
24    (a) On or before the 25th day of each calendar month, each

 

 

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1person who is required to collect and remit the tax under this
2Act shall file a return with the Department stating:
3        (1) the name of the person required to collect and
4    remit the tax;
5        (2) the address of the person's principal place of
6    business;
7        (3) the address of the sports and entertainment
8    facility;
9        (4) the number of taxable admissions to the sports and
10    entertainment facility during the period covered by the
11    return;
12        (5) the total amount of tax due under this Act for the
13    period covered by the return; and
14        (6) such other information as the Department may
15    require.
16    (b) The person filing the return under this Act shall, at
17the time of filing the return, pay to the Department the amount
18of tax imposed by this Act.
 
19    Section 17. Megaproject Sports and Entertainment Facility
20Admission Tax Trust Fund.
21    (a) The proceeds of the tax imposed under this Act shall be
22paid into the Megaproject Sports and Entertainment Facility
23Admission Tax Trust Fund. The Megaproject Sports and
24Entertainment Facility Admission Tax Trust Fund is hereby
25created as a trust fund to be held outside of the State

 

 

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1treasury with the State Treasurer, ex officio, as custodian.
2On or before the 15th day of each month to occur on or after
3the date on which the tax is first imposed under this Act, the
4State Comptroller shall pay to the City of Chicago, as the
5beneficiary of the Megaproject Sports and Entertainment
6Facility Admission Tax Trust Fund, 100% of the proceeds
7deposited into the Megaproject Sports and Entertainment
8Facility Admission Tax Trust Fund during the previous calendar
9month.
10    (b) As the beneficiary of the Megaproject Sports and
11Entertainment Facility Admission Tax Trust Fund, the City of
12Chicago shall have a property interest in the proceeds of the
13Megaproject Sports and Entertainment Facility Admission Tax
14Trust Fund that shall vest upon the first payment received by
15the City of Chicago under subsection (a) of this Section. The
16terms of the tax imposed pursuant to this Act may be revised
17only with the express consent of the owner and the beneficiary
18of the Megaproject Sports and Entertainment Facility Admission
19Tax Trust Fund.
 
20    Section 20. Incorporation of the Retailers' Occupation Tax
21Act and the Uniform Penalty and Interest Act. The Department
22shall administer and collect the admission tax imposed by this
23Act, to the extent practicable, in a manner consistent with
24the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
255i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the Retailers' Occupation

 

 

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1Tax Act and Section 3-7 of the Uniform Penalty and Interest
2Act.
 
3    Section 25. Rulemaking. The Department shall adopt rules
4necessary for the implementation of this Act.
 
5    Section 900. The State Finance Act is amended by adding
6Sections 5.1015 and 6z-140 as follows:
 
7    (30 ILCS 105/5.1015 new)
8    Sec. 5.1015. The Arlington Megaproject Infrastructure
9Fund.
 
10    (30 ILCS 105/6z-140 new)
11    Sec. 6z-140. The Arlington Megaproject Infrastructure
12Fund.
13    (a) The Arlington Megaproject Infrastructure Fund is
14created as a special fund in the State treasury. The entities
15receiving disbursements under subsection (b) of this Section
16may use funds received from the Arlington Megaproject
17Infrastructure Fund only for capital projects and
18infrastructure improvements. All interest earned on moneys in
19the Fund shall be deposited into the Fund. The Fund shall not
20be subject to administrative charges or chargebacks,
21including, but not limited to, those authorized under Section
228h.

 

 

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1    (b) On or before the last day of each month, the State
2Treasurer and the State Comptroller shall distribute the
3available balance in the Arlington Megaproject Infrastructure
4Fund as follows:
5        (1) 30% to the Village of Arlington Heights;
6        (2) 17% to the Village of Palatine;
7        (3) 17% to the City of Rolling Meadows;
8        (5) 6% to the Village of Buffalo Grove;
9        (6) 6% to the Village of Elk Grove Village;
10        (7) 6% to the Village of Mount Prospect;
11        (8) 6% to the City of Prospect Heights;
12        (9) 6% to the Village of Schaumburg; and
13        (10) 6% to the Village of Wheeling.
 
14    Section 905. The Use Tax Act is amended by changing
15Sections 3-5 and 9 as follows:
 
16    (35 ILCS 105/3-5)
17    Sec. 3-5. Exemptions. Use of the following tangible
18personal property is exempt from the tax imposed by this Act:
19    (1) Personal property purchased from a corporation,
20society, association, foundation, institution, or
21organization, other than a limited liability company, that is
22organized and operated as a not-for-profit service enterprise
23for the benefit of persons 65 years of age or older if the
24personal property was not purchased by the enterprise for the

 

 

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1purpose of resale by the enterprise.
2    (2) Personal property purchased by a not-for-profit
3Illinois county fair association for use in conducting,
4operating, or promoting the county fair.
5    (3) Personal property purchased by a not-for-profit arts
6or cultural organization that establishes, by proof required
7by the Department by rule, that it has received an exemption
8under Section 501(c)(3) of the Internal Revenue Code and that
9is organized and operated primarily for the presentation or
10support of arts or cultural programming, activities, or
11services. These organizations include, but are not limited to,
12music and dramatic arts organizations such as symphony
13orchestras and theatrical groups, arts and cultural service
14organizations, local arts councils, visual arts organizations,
15and media arts organizations. On and after July 1, 2001 (the
16effective date of Public Act 92-35), however, an entity
17otherwise eligible for this exemption shall not make tax-free
18purchases unless it has an active identification number issued
19by the Department.
20    (4) Except as otherwise provided in this Act, personal
21property purchased by a governmental body, by a corporation,
22society, association, foundation, or institution organized and
23operated exclusively for charitable, religious, or educational
24purposes, or by a not-for-profit corporation, society,
25association, foundation, institution, or organization that has
26no compensated officers or employees and that is organized and

 

 

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1operated primarily for the recreation of persons 55 years of
2age or older. A limited liability company may qualify for the
3exemption under this paragraph only if the limited liability
4company is organized and operated exclusively for educational
5purposes. On and after July 1, 1987, however, no entity
6otherwise eligible for this exemption shall make tax-free
7purchases unless it has an active exemption identification
8number issued by the Department.
9    (5) Until July 1, 2003, a passenger car that is a
10replacement vehicle to the extent that the purchase price of
11the car is subject to the Replacement Vehicle Tax.
12    (6) Until July 1, 2003 and beginning again on September 1,
132004 through August 30, 2014, graphic arts machinery and
14equipment, including repair and replacement parts, both new
15and used, and including that manufactured on special order,
16certified by the purchaser to be used primarily for graphic
17arts production, and including machinery and equipment
18purchased for lease. Equipment includes chemicals or chemicals
19acting as catalysts but only if the chemicals or chemicals
20acting as catalysts effect a direct and immediate change upon
21a graphic arts product. Beginning on July 1, 2017, graphic
22arts machinery and equipment is included in the manufacturing
23and assembling machinery and equipment exemption under
24paragraph (18).
25    (7) Farm chemicals.
26    (8) Legal tender, currency, medallions, or gold or silver

 

 

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1coinage issued by the State of Illinois, the government of the
2United States of America, or the government of any foreign
3country, and bullion.
4    (9) Personal property purchased from a teacher-sponsored
5student organization affiliated with an elementary or
6secondary school located in Illinois.
7    (10) A motor vehicle that is used for automobile renting,
8as defined in the Automobile Renting Occupation and Use Tax
9Act.
10    (11) Farm machinery and equipment, both new and used,
11including that manufactured on special order, certified by the
12purchaser to be used primarily for production agriculture or
13State or federal agricultural programs, including individual
14replacement parts for the machinery and equipment, including
15machinery and equipment purchased for lease, and including
16implements of husbandry defined in Section 1-130 of the
17Illinois Vehicle Code, farm machinery and agricultural
18chemical and fertilizer spreaders, and nurse wagons required
19to be registered under Section 3-809 of the Illinois Vehicle
20Code, but excluding other motor vehicles required to be
21registered under the Illinois Vehicle Code. Horticultural
22polyhouses or hoop houses used for propagating, growing, or
23overwintering plants shall be considered farm machinery and
24equipment under this item (11). Agricultural chemical tender
25tanks and dry boxes shall include units sold separately from a
26motor vehicle required to be licensed and units sold mounted

 

 

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1on a motor vehicle required to be licensed if the selling price
2of the tender is separately stated.
3    Farm machinery and equipment shall include precision
4farming equipment that is installed or purchased to be
5installed on farm machinery and equipment, including, but not
6limited to, tractors, harvesters, sprayers, planters, seeders,
7or spreaders. Precision farming equipment includes, but is not
8limited to, soil testing sensors, computers, monitors,
9software, global positioning and mapping systems, and other
10such equipment.
11    Farm machinery and equipment also includes computers,
12sensors, software, and related equipment used primarily in the
13computer-assisted operation of production agriculture
14facilities, equipment, and activities such as, but not limited
15to, the collection, monitoring, and correlation of animal and
16crop data for the purpose of formulating animal diets and
17agricultural chemicals.
18    Beginning on January 1, 2024, farm machinery and equipment
19also includes electrical power generation equipment used
20primarily for production agriculture.
21    This item (11) is exempt from the provisions of Section
223-90.
23    (12) Until June 30, 2013, fuel and petroleum products sold
24to or used by an air common carrier, certified by the carrier
25to be used for consumption, shipment, or storage in the
26conduct of its business as an air common carrier, for a flight

 

 

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1destined for or returning from a location or locations outside
2the United States without regard to previous or subsequent
3domestic stopovers.
4    Beginning July 1, 2013, fuel and petroleum products sold
5to or used by an air carrier, certified by the carrier to be
6used for consumption, shipment, or storage in the conduct of
7its business as an air common carrier, for a flight that (i) is
8engaged in foreign trade or is engaged in trade between the
9United States and any of its possessions and (ii) transports
10at least one individual or package for hire from the city of
11origination to the city of final destination on the same
12aircraft, without regard to a change in the flight number of
13that aircraft.
14    (13) Proceeds of mandatory service charges separately
15stated on customers' bills for the purchase and consumption of
16food and beverages purchased at retail from a retailer, to the
17extent that the proceeds of the service charge are in fact
18turned over as tips or as a substitute for tips to the
19employees who participate directly in preparing, serving,
20hosting or cleaning up the food or beverage function with
21respect to which the service charge is imposed.
22    (14) Until July 1, 2003, oil field exploration, drilling,
23and production equipment, including (i) rigs and parts of
24rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
25pipe and tubular goods, including casing and drill strings,
26(iii) pumps and pump-jack units, (iv) storage tanks and flow

 

 

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1lines, (v) any individual replacement part for oil field
2exploration, drilling, and production equipment, and (vi)
3machinery and equipment purchased for lease; but excluding
4motor vehicles required to be registered under the Illinois
5Vehicle Code.
6    (15) Photoprocessing machinery and equipment, including
7repair and replacement parts, both new and used, including
8that manufactured on special order, certified by the purchaser
9to be used primarily for photoprocessing, and including
10photoprocessing machinery and equipment purchased for lease.
11    (16) Until July 1, 2028, coal and aggregate exploration,
12mining, off-highway hauling, processing, maintenance, and
13reclamation equipment, including replacement parts and
14equipment, and including equipment purchased for lease, but
15excluding motor vehicles required to be registered under the
16Illinois Vehicle Code. The changes made to this Section by
17Public Act 97-767 apply on and after July 1, 2003, but no claim
18for credit or refund is allowed on or after August 16, 2013
19(the effective date of Public Act 98-456) for such taxes paid
20during the period beginning July 1, 2003 and ending on August
2116, 2013 (the effective date of Public Act 98-456).
22    (17) Until July 1, 2003, distillation machinery and
23equipment, sold as a unit or kit, assembled or installed by the
24retailer, certified by the user to be used only for the
25production of ethyl alcohol that will be used for consumption
26as motor fuel or as a component of motor fuel for the personal

 

 

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1use of the user, and not subject to sale or resale.
2    (18) Manufacturing and assembling machinery and equipment
3used primarily in the process of manufacturing or assembling
4tangible personal property for wholesale or retail sale or
5lease, whether that sale or lease is made directly by the
6manufacturer or by some other person, whether the materials
7used in the process are owned by the manufacturer or some other
8person, or whether that sale or lease is made apart from or as
9an incident to the seller's engaging in the service occupation
10of producing machines, tools, dies, jigs, patterns, gauges, or
11other similar items of no commercial value on special order
12for a particular purchaser. The exemption provided by this
13paragraph (18) includes production related tangible personal
14property, as defined in Section 3-50, purchased on or after
15July 1, 2019. The exemption provided by this paragraph (18)
16does not include machinery and equipment used in (i) the
17generation of electricity for wholesale or retail sale; (ii)
18the generation or treatment of natural or artificial gas for
19wholesale or retail sale that is delivered to customers
20through pipes, pipelines, or mains; or (iii) the treatment of
21water for wholesale or retail sale that is delivered to
22customers through pipes, pipelines, or mains. The provisions
23of Public Act 98-583 are declaratory of existing law as to the
24meaning and scope of this exemption. Beginning on July 1,
252017, the exemption provided by this paragraph (18) includes,
26but is not limited to, graphic arts machinery and equipment,

 

 

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1as defined in paragraph (6) of this Section.
2    (19) Personal property delivered to a purchaser or
3purchaser's donee inside Illinois when the purchase order for
4that personal property was received by a florist located
5outside Illinois who has a florist located inside Illinois
6deliver the personal property.
7    (20) Semen used for artificial insemination of livestock
8for direct agricultural production.
9    (21) Horses, or interests in horses, registered with and
10meeting the requirements of any of the Arabian Horse Club
11Registry of America, Appaloosa Horse Club, American Quarter
12Horse Association, United States Trotting Association, or
13Jockey Club, as appropriate, used for purposes of breeding or
14racing for prizes. This item (21) is exempt from the
15provisions of Section 3-90, and the exemption provided for
16under this item (21) applies for all periods beginning May 30,
171995, but no claim for credit or refund is allowed on or after
18January 1, 2008 for such taxes paid during the period
19beginning May 30, 2000 and ending on January 1, 2008.
20    (22) Computers and communications equipment utilized for
21any hospital purpose and equipment used in the diagnosis,
22analysis, or treatment of hospital patients purchased by a
23lessor who leases the equipment, under a lease of one year or
24longer executed or in effect at the time the lessor would
25otherwise be subject to the tax imposed by this Act, to a
26hospital that has been issued an active tax exemption

 

 

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1identification number by the Department under Section 1g of
2the Retailers' Occupation Tax Act. If the equipment is leased
3in a manner that does not qualify for this exemption or is used
4in any other non-exempt manner, the lessor shall be liable for
5the tax imposed under this Act or the Service Use Tax Act, as
6the case may be, based on the fair market value of the property
7at the time the non-qualifying use occurs. No lessor shall
8collect or attempt to collect an amount (however designated)
9that purports to reimburse that lessor for the tax imposed by
10this Act or the Service Use Tax Act, as the case may be, if the
11tax has not been paid by the lessor. If a lessor improperly
12collects any such amount from the lessee, the lessee shall
13have a legal right to claim a refund of that amount from the
14lessor. If, however, that amount is not refunded to the lessee
15for any reason, the lessor is liable to pay that amount to the
16Department.
17    (23) Personal property purchased by a lessor who leases
18the property, under a lease of one year or longer executed or
19in effect at the time the lessor would otherwise be subject to
20the tax imposed by this Act, to a governmental body that has
21been issued an active sales tax exemption identification
22number by the Department under Section 1g of the Retailers'
23Occupation Tax Act. If the property is leased in a manner that
24does not qualify for this exemption or used in any other
25non-exempt manner, the lessor shall be liable for the tax
26imposed under this Act or the Service Use Tax Act, as the case

 

 

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1may be, based on the fair market value of the property at the
2time the non-qualifying use occurs. No lessor shall collect or
3attempt to collect an amount (however designated) that
4purports to reimburse that lessor for the tax imposed by this
5Act or the Service Use Tax Act, as the case may be, if the tax
6has not been paid by the lessor. If a lessor improperly
7collects any such amount from the lessee, the lessee shall
8have a legal right to claim a refund of that amount from the
9lessor. If, however, that amount is not refunded to the lessee
10for any reason, the lessor is liable to pay that amount to the
11Department.
12    (24) Beginning with taxable years ending on or after
13December 31, 1995 and ending with taxable years ending on or
14before December 31, 2004, personal property that is donated
15for disaster relief to be used in a State or federally declared
16disaster area in Illinois or bordering Illinois by a
17manufacturer or retailer that is registered in this State to a
18corporation, society, association, foundation, or institution
19that has been issued a sales tax exemption identification
20number by the Department that assists victims of the disaster
21who reside within the declared disaster area.
22    (25) Beginning with taxable years ending on or after
23December 31, 1995 and ending with taxable years ending on or
24before December 31, 2004, personal property that is used in
25the performance of infrastructure repairs in this State,
26including, but not limited to, municipal roads and streets,

 

 

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1access roads, bridges, sidewalks, waste disposal systems,
2water and sewer line extensions, water distribution and
3purification facilities, storm water drainage and retention
4facilities, and sewage treatment facilities, resulting from a
5State or federally declared disaster in Illinois or bordering
6Illinois when such repairs are initiated on facilities located
7in the declared disaster area within 6 months after the
8disaster.
9    (26) Beginning July 1, 1999, game or game birds purchased
10at a "game breeding and hunting preserve area" as that term is
11used in the Wildlife Code. This paragraph is exempt from the
12provisions of Section 3-90.
13    (27) A motor vehicle, as that term is defined in Section
141-146 of the Illinois Vehicle Code, that is donated to a
15corporation, limited liability company, society, association,
16foundation, or institution that is determined by the
17Department to be organized and operated exclusively for
18educational purposes. For purposes of this exemption, "a
19corporation, limited liability company, society, association,
20foundation, or institution organized and operated exclusively
21for educational purposes" means all tax-supported public
22schools, private schools that offer systematic instruction in
23useful branches of learning by methods common to public
24schools and that compare favorably in their scope and
25intensity with the course of study presented in tax-supported
26schools, and vocational or technical schools or institutes

 

 

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1organized and operated exclusively to provide a course of
2study of not less than 6 weeks duration and designed to prepare
3individuals to follow a trade or to pursue a manual,
4technical, mechanical, industrial, business, or commercial
5occupation.
6    (28) Beginning January 1, 2000, personal property,
7including food, purchased through fundraising events for the
8benefit of a public or private elementary or secondary school,
9a group of those schools, or one or more school districts if
10the events are sponsored by an entity recognized by the school
11district that consists primarily of volunteers and includes
12parents and teachers of the school children. This paragraph
13does not apply to fundraising events (i) for the benefit of
14private home instruction or (ii) for which the fundraising
15entity purchases the personal property sold at the events from
16another individual or entity that sold the property for the
17purpose of resale by the fundraising entity and that profits
18from the sale to the fundraising entity. This paragraph is
19exempt from the provisions of Section 3-90.
20    (29) Beginning January 1, 2000 and through December 31,
212001, new or used automatic vending machines that prepare and
22serve hot food and beverages, including coffee, soup, and
23other items, and replacement parts for these machines.
24Beginning January 1, 2002 and through June 30, 2003, machines
25and parts for machines used in commercial, coin-operated
26amusement and vending business if a use or occupation tax is

 

 

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1paid on the gross receipts derived from the use of the
2commercial, coin-operated amusement and vending machines. This
3paragraph is exempt from the provisions of Section 3-90.
4    (30) Beginning January 1, 2001 and through June 30, 2016,
5food for human consumption that is to be consumed off the
6premises where it is sold (other than alcoholic beverages,
7soft drinks, and food that has been prepared for immediate
8consumption) and prescription and nonprescription medicines,
9drugs, medical appliances, and insulin, urine testing
10materials, syringes, and needles used by diabetics, for human
11use, when purchased for use by a person receiving medical
12assistance under Article V of the Illinois Public Aid Code who
13resides in a licensed long-term care facility, as defined in
14the Nursing Home Care Act, or in a licensed facility as defined
15in the ID/DD Community Care Act, the MC/DD Act, or the
16Specialized Mental Health Rehabilitation Act of 2013.
17    (31) Beginning on August 2, 2001 (the effective date of
18Public Act 92-227), computers and communications equipment
19utilized for any hospital purpose and equipment used in the
20diagnosis, analysis, or treatment of hospital patients
21purchased by a lessor who leases the equipment, under a lease
22of one year or longer executed or in effect at the time the
23lessor would otherwise be subject to the tax imposed by this
24Act, to a hospital that has been issued an active tax exemption
25identification number by the Department under Section 1g of
26the Retailers' Occupation Tax Act. If the equipment is leased

 

 

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1in a manner that does not qualify for this exemption or is used
2in any other nonexempt manner, the lessor shall be liable for
3the tax imposed under this Act or the Service Use Tax Act, as
4the case may be, based on the fair market value of the property
5at the time the nonqualifying use occurs. No lessor shall
6collect or attempt to collect an amount (however designated)
7that purports to reimburse that lessor for the tax imposed by
8this Act or the Service Use Tax Act, as the case may be, if the
9tax has not been paid by the lessor. If a lessor improperly
10collects any such amount from the lessee, the lessee shall
11have a legal right to claim a refund of that amount from the
12lessor. If, however, that amount is not refunded to the lessee
13for any reason, the lessor is liable to pay that amount to the
14Department. This paragraph is exempt from the provisions of
15Section 3-90.
16    (32) Beginning on August 2, 2001 (the effective date of
17Public Act 92-227), personal property purchased by a lessor
18who leases the property, under a lease of one year or longer
19executed or in effect at the time the lessor would otherwise be
20subject to the tax imposed by this Act, to a governmental body
21that has been issued an active sales tax exemption
22identification number by the Department under Section 1g of
23the Retailers' Occupation Tax Act. If the property is leased
24in a manner that does not qualify for this exemption or used in
25any other nonexempt manner, the lessor shall be liable for the
26tax imposed under this Act or the Service Use Tax Act, as the

 

 

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1case may be, based on the fair market value of the property at
2the time the nonqualifying use occurs. No lessor shall collect
3or attempt to collect an amount (however designated) that
4purports to reimburse that lessor for the tax imposed by this
5Act or the Service Use Tax Act, as the case may be, if the tax
6has not been paid by the lessor. If a lessor improperly
7collects any such amount from the lessee, the lessee shall
8have a legal right to claim a refund of that amount from the
9lessor. If, however, that amount is not refunded to the lessee
10for any reason, the lessor is liable to pay that amount to the
11Department. This paragraph is exempt from the provisions of
12Section 3-90.
13    (33) On and after July 1, 2003 and through June 30, 2004,
14the use in this State of motor vehicles of the second division
15with a gross vehicle weight in excess of 8,000 pounds and that
16are subject to the commercial distribution fee imposed under
17Section 3-815.1 of the Illinois Vehicle Code. Beginning on
18July 1, 2004 and through June 30, 2005, the use in this State
19of motor vehicles of the second division: (i) with a gross
20vehicle weight rating in excess of 8,000 pounds; (ii) that are
21subject to the commercial distribution fee imposed under
22Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
23are primarily used for commercial purposes. Through June 30,
242005, this exemption applies to repair and replacement parts
25added after the initial purchase of such a motor vehicle if
26that motor vehicle is used in a manner that would qualify for

 

 

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1the rolling stock exemption otherwise provided for in this
2Act. For purposes of this paragraph, the term "used for
3commercial purposes" means the transportation of persons or
4property in furtherance of any commercial or industrial
5enterprise, whether for-hire or not.
6    (34) Beginning January 1, 2008, tangible personal property
7used in the construction or maintenance of a community water
8supply, as defined under Section 3.145 of the Environmental
9Protection Act, that is operated by a not-for-profit
10corporation that holds a valid water supply permit issued
11under Title IV of the Environmental Protection Act. This
12paragraph is exempt from the provisions of Section 3-90.
13    (35) Beginning January 1, 2010 and continuing through
14December 31, 2029, materials, parts, equipment, components,
15and furnishings incorporated into or upon an aircraft as part
16of the modification, refurbishment, completion, replacement,
17repair, or maintenance of the aircraft. This exemption
18includes consumable supplies used in the modification,
19refurbishment, completion, replacement, repair, and
20maintenance of aircraft. However, until January 1, 2024, this
21exemption excludes any materials, parts, equipment,
22components, and consumable supplies used in the modification,
23replacement, repair, and maintenance of aircraft engines or
24power plants, whether such engines or power plants are
25installed or uninstalled upon any such aircraft. "Consumable
26supplies" include, but are not limited to, adhesive, tape,

 

 

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1sandpaper, general purpose lubricants, cleaning solution,
2latex gloves, and protective films.
3    Beginning January 1, 2010 and continuing through December
431, 2023, this exemption applies only to the use of qualifying
5tangible personal property by persons who modify, refurbish,
6complete, repair, replace, or maintain aircraft and who (i)
7hold an Air Agency Certificate and are empowered to operate an
8approved repair station by the Federal Aviation
9Administration, (ii) have a Class IV Rating, and (iii) conduct
10operations in accordance with Part 145 of the Federal Aviation
11Regulations. From January 1, 2024 through December 31, 2029,
12this exemption applies only to the use of qualifying tangible
13personal property by: (A) persons who modify, refurbish,
14complete, repair, replace, or maintain aircraft and who (i)
15hold an Air Agency Certificate and are empowered to operate an
16approved repair station by the Federal Aviation
17Administration, (ii) have a Class IV Rating, and (iii) conduct
18operations in accordance with Part 145 of the Federal Aviation
19Regulations; and (B) persons who engage in the modification,
20replacement, repair, and maintenance of aircraft engines or
21power plants without regard to whether or not those persons
22meet the qualifications of item (A).
23    The exemption does not include aircraft operated by a
24commercial air carrier providing scheduled passenger air
25service pursuant to authority issued under Part 121 or Part
26129 of the Federal Aviation Regulations. The changes made to

 

 

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1this paragraph (35) by Public Act 98-534 are declarative of
2existing law. It is the intent of the General Assembly that the
3exemption under this paragraph (35) applies continuously from
4January 1, 2010 through December 31, 2024; however, no claim
5for credit or refund is allowed for taxes paid as a result of
6the disallowance of this exemption on or after January 1, 2015
7and prior to February 5, 2020 (the effective date of Public Act
8101-629).
9    (36) Tangible personal property purchased by a
10public-facilities corporation, as described in Section
1111-65-10 of the Illinois Municipal Code, for purposes of
12constructing or furnishing a municipal convention hall, but
13only if the legal title to the municipal convention hall is
14transferred to the municipality without any further
15consideration by or on behalf of the municipality at the time
16of the completion of the municipal convention hall or upon the
17retirement or redemption of any bonds or other debt
18instruments issued by the public-facilities corporation in
19connection with the development of the municipal convention
20hall. This exemption includes existing public-facilities
21corporations as provided in Section 11-65-25 of the Illinois
22Municipal Code. This paragraph is exempt from the provisions
23of Section 3-90.
24    (37) Beginning January 1, 2017 and through December 31,
252026, menstrual pads, tampons, and menstrual cups.
26    (38) Merchandise that is subject to the Rental Purchase

 

 

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1Agreement Occupation and Use Tax. The purchaser must certify
2that the item is purchased to be rented subject to a
3rental-purchase rental purchase agreement, as defined in the
4Rental-Purchase Rental Purchase Agreement Act, and provide
5proof of registration under the Rental Purchase Agreement
6Occupation and Use Tax Act. This paragraph is exempt from the
7provisions of Section 3-90.
8    (39) Tangible personal property purchased by a purchaser
9who is exempt from the tax imposed by this Act by operation of
10federal law. This paragraph is exempt from the provisions of
11Section 3-90.
12    (40) Qualified tangible personal property used in the
13construction or operation of a data center that has been
14granted a certificate of exemption by the Department of
15Commerce and Economic Opportunity, whether that tangible
16personal property is purchased by the owner, operator, or
17tenant of the data center or by a contractor or subcontractor
18of the owner, operator, or tenant. Data centers that would
19have qualified for a certificate of exemption prior to January
201, 2020 had Public Act 101-31 been in effect may apply for and
21obtain an exemption for subsequent purchases of computer
22equipment or enabling software purchased or leased to upgrade,
23supplement, or replace computer equipment or enabling software
24purchased or leased in the original investment that would have
25qualified.
26    The Department of Commerce and Economic Opportunity shall

 

 

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1grant a certificate of exemption under this item (40) to
2qualified data centers as defined by Section 605-1025 of the
3Department of Commerce and Economic Opportunity Law of the
4Civil Administrative Code of Illinois.
5    For the purposes of this item (40):
6        "Data center" means a building or a series of
7    buildings rehabilitated or constructed to house working
8    servers in one physical location or multiple sites within
9    the State of Illinois.
10        "Qualified tangible personal property" means:
11    electrical systems and equipment; climate control and
12    chilling equipment and systems; mechanical systems and
13    equipment; monitoring and secure systems; emergency
14    generators; hardware; computers; servers; data storage
15    devices; network connectivity equipment; racks; cabinets;
16    telecommunications cabling infrastructure; raised floor
17    systems; peripheral components or systems; software;
18    mechanical, electrical, or plumbing systems; battery
19    systems; cooling systems and towers; temperature control
20    systems; other cabling; and other data center
21    infrastructure equipment and systems necessary to operate
22    qualified tangible personal property, including fixtures;
23    and component parts of any of the foregoing, including
24    installation, maintenance, repair, refurbishment, and
25    replacement of qualified tangible personal property to
26    generate, transform, transmit, distribute, or manage

 

 

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1    electricity necessary to operate qualified tangible
2    personal property; and all other tangible personal
3    property that is essential to the operations of a computer
4    data center. The term "qualified tangible personal
5    property" also includes building materials physically
6    incorporated into in to the qualifying data center. To
7    document the exemption allowed under this Section, the
8    retailer must obtain from the purchaser a copy of the
9    certificate of eligibility issued by the Department of
10    Commerce and Economic Opportunity.
11    This item (40) is exempt from the provisions of Section
123-90.
13    (41) Beginning July 1, 2022, breast pumps, breast pump
14collection and storage supplies, and breast pump kits. This
15item (41) is exempt from the provisions of Section 3-90. As
16used in this item (41):
17        "Breast pump" means an electrically controlled or
18    manually controlled pump device designed or marketed to be
19    used to express milk from a human breast during lactation,
20    including the pump device and any battery, AC adapter, or
21    other power supply unit that is used to power the pump
22    device and is packaged and sold with the pump device at the
23    time of sale.
24        "Breast pump collection and storage supplies" means
25    items of tangible personal property designed or marketed
26    to be used in conjunction with a breast pump to collect

 

 

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1    milk expressed from a human breast and to store collected
2    milk until it is ready for consumption.
3        "Breast pump collection and storage supplies"
4    includes, but is not limited to: breast shields and breast
5    shield connectors; breast pump tubes and tubing adapters;
6    breast pump valves and membranes; backflow protectors and
7    backflow protector adaptors; bottles and bottle caps
8    specific to the operation of the breast pump; and breast
9    milk storage bags.
10        "Breast pump collection and storage supplies" does not
11    include: (1) bottles and bottle caps not specific to the
12    operation of the breast pump; (2) breast pump travel bags
13    and other similar carrying accessories, including ice
14    packs, labels, and other similar products; (3) breast pump
15    cleaning supplies; (4) nursing bras, bra pads, breast
16    shells, and other similar products; and (5) creams,
17    ointments, and other similar products that relieve
18    breastfeeding-related symptoms or conditions of the
19    breasts or nipples, unless sold as part of a breast pump
20    kit that is pre-packaged by the breast pump manufacturer
21    or distributor.
22        "Breast pump kit" means a kit that: (1) contains no
23    more than a breast pump, breast pump collection and
24    storage supplies, a rechargeable battery for operating the
25    breast pump, a breastmilk cooler, bottle stands, ice
26    packs, and a breast pump carrying case; and (2) is

 

 

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1    pre-packaged as a breast pump kit by the breast pump
2    manufacturer or distributor.
3    (42) Tangible personal property sold by or on behalf of
4the State Treasurer pursuant to the Revised Uniform Unclaimed
5Property Act. This item (42) is exempt from the provisions of
6Section 3-90.
7    (43) Beginning on January 1, 2024, tangible personal
8property purchased by an active duty member of the armed
9forces of the United States who presents valid military
10identification and purchases the property using a form of
11payment where the federal government is the payor. The member
12of the armed forces must complete, at the point of sale, a form
13prescribed by the Department of Revenue documenting that the
14transaction is eligible for the exemption under this
15paragraph. Retailers must keep the form as documentation of
16the exemption in their records for a period of not less than 6
17years. "Armed forces of the United States" means the United
18States Army, Navy, Air Force, Marine Corps, or Coast Guard.
19This paragraph is exempt from the provisions of Section 3-90.
20    (44) Qualified tangible personal property used in the
21construction or operation of a megaproject for which a
22certificate has been issued by the Department under Division
2322 of Article 10 of the Property Tax Code, whether that
24tangible personal property is purchased by the owner,
25operator, or tenant of the megaproject or by a contractor or
26subcontractor of the owner, operator, or tenant.

 

 

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1    As used in this item (44):
2    "Megaproject" has the meaning ascribed to that term in
3Section 10-910 of the Property Tax Code.
4    "Qualified tangible personal property" means: electrical
5systems and equipment; climate control and chilling equipment
6and systems; mechanical systems and equipment; monitoring and
7security systems; emergency generators; hardware; computers;
8servers; data storage devices; network connectivity equipment;
9racks; cabinets; telecommunications cabling infrastructure;
10raised floor systems; peripheral components or systems;
11software; mechanical, electrical, or plumbing systems; battery
12systems; cooling systems and towers; temperature control
13systems; other cabling; and other data center infrastructure
14equipment and systems necessary to operate qualified tangible
15personal property, including fixtures; and component parts of
16those items, including installation, maintenance, repair,
17refurbishment, and replacement of qualified tangible personal
18property to generate, transform, transmit, distribute, or
19manage electricity necessary to operate qualified tangible
20personal property; and all other tangible personal property
21that is essential to the operations of a megaproject. The term
22"qualified tangible personal property" also includes building
23materials to be incorporated into the megaproject. To document
24the exemption allowed under this Section, the retailer,
25contractor or subcontractor or supplier must obtain from the
26purchaser a copy of the certificate issued by the Department

 

 

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1of Revenue for the megaproject as described and defined in
2Division 22 of Article 10 of the Property Tax Code.
3    This item (44) is exempt from the provisions of Section
43-90.
5(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
6Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
7eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
8Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
9eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
10revised 12-12-23.)
 
11    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
12    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
13and trailers that are required to be registered with an agency
14of this State, each retailer required or authorized to collect
15the tax imposed by this Act shall pay to the Department the
16amount of such tax (except as otherwise provided) at the time
17when he is required to file his return for the period during
18which such tax was collected, less a discount of 2.1% prior to
19January 1, 1990, and 1.75% on and after January 1, 1990, or $5
20per calendar year, whichever is greater, which is allowed to
21reimburse the retailer for expenses incurred in collecting the
22tax, keeping records, preparing and filing returns, remitting
23the tax and supplying data to the Department on request. When
24determining the discount allowed under this Section, retailers
25shall include the amount of tax that would have been due at the

 

 

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16.25% rate but for the 1.25% rate imposed on sales tax holiday
2items under Public Act 102-700. The discount under this
3Section is not allowed for the 1.25% portion of taxes paid on
4aviation fuel that is subject to the revenue use requirements
5of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. When determining
6the discount allowed under this Section, retailers shall
7include the amount of tax that would have been due at the 1%
8rate but for the 0% rate imposed under Public Act 102-700. In
9the case of retailers who report and pay the tax on a
10transaction by transaction basis, as provided in this Section,
11such discount shall be taken with each such tax remittance
12instead of when such retailer files his periodic return. The
13discount allowed under this Section is allowed only for
14returns that are filed in the manner required by this Act. The
15Department may disallow the discount for retailers whose
16certificate of registration is revoked at the time the return
17is filed, but only if the Department's decision to revoke the
18certificate of registration has become final. A retailer need
19not remit that part of any tax collected by him to the extent
20that he is required to remit and does remit the tax imposed by
21the Retailers' Occupation Tax Act, with respect to the sale of
22the same property.
23    Where such tangible personal property is sold under a
24conditional sales contract, or under any other form of sale
25wherein the payment of the principal sum, or a part thereof, is
26extended beyond the close of the period for which the return is

 

 

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1filed, the retailer, in collecting the tax (except as to motor
2vehicles, watercraft, aircraft, and trailers that are required
3to be registered with an agency of this State), may collect for
4each tax return period, only the tax applicable to that part of
5the selling price actually received during such tax return
6period.
7    Except as provided in this Section, on or before the
8twentieth day of each calendar month, such retailer shall file
9a return for the preceding calendar month. Such return shall
10be filed on forms prescribed by the Department and shall
11furnish such information as the Department may reasonably
12require. The return shall include the gross receipts on food
13for human consumption that is to be consumed off the premises
14where it is sold (other than alcoholic beverages, food
15consisting of or infused with adult use cannabis, soft drinks,
16and food that has been prepared for immediate consumption)
17which were received during the preceding calendar month,
18quarter, or year, as appropriate, and upon which tax would
19have been due but for the 0% rate imposed under Public Act
20102-700. The return shall also include the amount of tax that
21would have been due on food for human consumption that is to be
22consumed off the premises where it is sold (other than
23alcoholic beverages, food consisting of or infused with adult
24use cannabis, soft drinks, and food that has been prepared for
25immediate consumption) but for the 0% rate imposed under
26Public Act 102-700.

 

 

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1    On and after January 1, 2018, except for returns required
2to be filed prior to January 1, 2023 for motor vehicles,
3watercraft, aircraft, and trailers that are required to be
4registered with an agency of this State, with respect to
5retailers whose annual gross receipts average $20,000 or more,
6all returns required to be filed pursuant to this Act shall be
7filed electronically. On and after January 1, 2023, with
8respect to retailers whose annual gross receipts average
9$20,000 or more, all returns required to be filed pursuant to
10this Act, including, but not limited to, returns for motor
11vehicles, watercraft, aircraft, and trailers that are required
12to be registered with an agency of this State, shall be filed
13electronically. Retailers who demonstrate that they do not
14have access to the Internet or demonstrate hardship in filing
15electronically may petition the Department to waive the
16electronic filing requirement.
17    The Department may require returns to be filed on a
18quarterly basis. If so required, a return for each calendar
19quarter shall be filed on or before the twentieth day of the
20calendar month following the end of such calendar quarter. The
21taxpayer shall also file a return with the Department for each
22of the first 2 two months of each calendar quarter, on or
23before the twentieth day of the following calendar month,
24stating:
25        1. The name of the seller;
26        2. The address of the principal place of business from

 

 

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1    which he engages in the business of selling tangible
2    personal property at retail in this State;
3        3. The total amount of taxable receipts received by
4    him during the preceding calendar month from sales of
5    tangible personal property by him during such preceding
6    calendar month, including receipts from charge and time
7    sales, but less all deductions allowed by law;
8        4. The amount of credit provided in Section 2d of this
9    Act;
10        5. The amount of tax due;
11        5-5. The signature of the taxpayer; and
12        6. Such other reasonable information as the Department
13    may require.
14    Each retailer required or authorized to collect the tax
15imposed by this Act on aviation fuel sold at retail in this
16State during the preceding calendar month shall, instead of
17reporting and paying tax on aviation fuel as otherwise
18required by this Section, report and pay such tax on a separate
19aviation fuel tax return. The requirements related to the
20return shall be as otherwise provided in this Section.
21Notwithstanding any other provisions of this Act to the
22contrary, retailers collecting tax on aviation fuel shall file
23all aviation fuel tax returns and shall make all aviation fuel
24tax payments by electronic means in the manner and form
25required by the Department. For purposes of this Section,
26"aviation fuel" means jet fuel and aviation gasoline.

 

 

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1    If a taxpayer fails to sign a return within 30 days after
2the proper notice and demand for signature by the Department,
3the return shall be considered valid and any amount shown to be
4due on the return shall be deemed assessed.
5    Notwithstanding any other provision of this Act to the
6contrary, retailers subject to tax on cannabis shall file all
7cannabis tax returns and shall make all cannabis tax payments
8by electronic means in the manner and form required by the
9Department.
10    Beginning October 1, 1993, a taxpayer who has an average
11monthly tax liability of $150,000 or more shall make all
12payments required by rules of the Department by electronic
13funds transfer. Beginning October 1, 1994, a taxpayer who has
14an average monthly tax liability of $100,000 or more shall
15make all payments required by rules of the Department by
16electronic funds transfer. Beginning October 1, 1995, a
17taxpayer who has an average monthly tax liability of $50,000
18or more shall make all payments required by rules of the
19Department by electronic funds transfer. Beginning October 1,
202000, a taxpayer who has an annual tax liability of $200,000 or
21more shall make all payments required by rules of the
22Department by electronic funds transfer. The term "annual tax
23liability" shall be the sum of the taxpayer's liabilities
24under this Act, and under all other State and local occupation
25and use tax laws administered by the Department, for the
26immediately preceding calendar year. The term "average monthly

 

 

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1tax liability" means the sum of the taxpayer's liabilities
2under this Act, and under all other State and local occupation
3and use tax laws administered by the Department, for the
4immediately preceding calendar year divided by 12. Beginning
5on October 1, 2002, a taxpayer who has a tax liability in the
6amount set forth in subsection (b) of Section 2505-210 of the
7Department of Revenue Law shall make all payments required by
8rules of the Department by electronic funds transfer.
9    Before August 1 of each year beginning in 1993, the
10Department shall notify all taxpayers required to make
11payments by electronic funds transfer. All taxpayers required
12to make payments by electronic funds transfer shall make those
13payments for a minimum of one year beginning on October 1.
14    Any taxpayer not required to make payments by electronic
15funds transfer may make payments by electronic funds transfer
16with the permission of the Department.
17    All taxpayers required to make payment by electronic funds
18transfer and any taxpayers authorized to voluntarily make
19payments by electronic funds transfer shall make those
20payments in the manner authorized by the Department.
21    The Department shall adopt such rules as are necessary to
22effectuate a program of electronic funds transfer and the
23requirements of this Section.
24    Before October 1, 2000, if the taxpayer's average monthly
25tax liability to the Department under this Act, the Retailers'
26Occupation Tax Act, the Service Occupation Tax Act, the

 

 

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1Service Use Tax Act was $10,000 or more during the preceding 4
2complete calendar quarters, he shall file a return with the
3Department each month by the 20th day of the month next
4following the month during which such tax liability is
5incurred and shall make payments to the Department on or
6before the 7th, 15th, 22nd and last day of the month during
7which such liability is incurred. On and after October 1,
82000, if the taxpayer's average monthly tax liability to the
9Department under this Act, the Retailers' Occupation Tax Act,
10the Service Occupation Tax Act, and the Service Use Tax Act was
11$20,000 or more during the preceding 4 complete calendar
12quarters, he shall file a return with the Department each
13month by the 20th day of the month next following the month
14during which such tax liability is incurred and shall make
15payment to the Department on or before the 7th, 15th, 22nd and
16last day of the month during which such liability is incurred.
17If the month during which such tax liability is incurred began
18prior to January 1, 1985, each payment shall be in an amount
19equal to 1/4 of the taxpayer's actual liability for the month
20or an amount set by the Department not to exceed 1/4 of the
21average monthly liability of the taxpayer to the Department
22for the preceding 4 complete calendar quarters (excluding the
23month of highest liability and the month of lowest liability
24in such 4 quarter period). If the month during which such tax
25liability is incurred begins on or after January 1, 1985, and
26prior to January 1, 1987, each payment shall be in an amount

 

 

HB4655- 39 -LRB103 36446 HLH 67754 b

1equal to 22.5% of the taxpayer's actual liability for the
2month or 27.5% of the taxpayer's liability for the same
3calendar month of the preceding year. If the month during
4which such tax liability is incurred begins on or after
5January 1, 1987, and prior to January 1, 1988, each payment
6shall be in an amount equal to 22.5% of the taxpayer's actual
7liability for the month or 26.25% of the taxpayer's liability
8for the same calendar month of the preceding year. If the month
9during which such tax liability is incurred begins on or after
10January 1, 1988, and prior to January 1, 1989, or begins on or
11after January 1, 1996, each payment shall be in an amount equal
12to 22.5% of the taxpayer's actual liability for the month or
1325% of the taxpayer's liability for the same calendar month of
14the preceding year. If the month during which such tax
15liability is incurred begins on or after January 1, 1989, and
16prior to January 1, 1996, each payment shall be in an amount
17equal to 22.5% of the taxpayer's actual liability for the
18month or 25% of the taxpayer's liability for the same calendar
19month of the preceding year or 100% of the taxpayer's actual
20liability for the quarter monthly reporting period. The amount
21of such quarter monthly payments shall be credited against the
22final tax liability of the taxpayer's return for that month.
23Before October 1, 2000, once applicable, the requirement of
24the making of quarter monthly payments to the Department shall
25continue until such taxpayer's average monthly liability to
26the Department during the preceding 4 complete calendar

 

 

HB4655- 40 -LRB103 36446 HLH 67754 b

1quarters (excluding the month of highest liability and the
2month of lowest liability) is less than $9,000, or until such
3taxpayer's average monthly liability to the Department as
4computed for each calendar quarter of the 4 preceding complete
5calendar quarter period is less than $10,000. However, if a
6taxpayer can show the Department that a substantial change in
7the taxpayer's business has occurred which causes the taxpayer
8to anticipate that his average monthly tax liability for the
9reasonably foreseeable future will fall below the $10,000
10threshold stated above, then such taxpayer may petition the
11Department for change in such taxpayer's reporting status. On
12and after October 1, 2000, once applicable, the requirement of
13the making of quarter monthly payments to the Department shall
14continue until such taxpayer's average monthly liability to
15the Department during the preceding 4 complete calendar
16quarters (excluding the month of highest liability and the
17month of lowest liability) is less than $19,000 or until such
18taxpayer's average monthly liability to the Department as
19computed for each calendar quarter of the 4 preceding complete
20calendar quarter period is less than $20,000. However, if a
21taxpayer can show the Department that a substantial change in
22the taxpayer's business has occurred which causes the taxpayer
23to anticipate that his average monthly tax liability for the
24reasonably foreseeable future will fall below the $20,000
25threshold stated above, then such taxpayer may petition the
26Department for a change in such taxpayer's reporting status.

 

 

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1The Department shall change such taxpayer's reporting status
2unless it finds that such change is seasonal in nature and not
3likely to be long term. Quarter monthly payment status shall
4be determined under this paragraph as if the rate reduction to
51.25% in Public Act 102-700 on sales tax holiday items had not
6occurred. For quarter monthly payments due on or after July 1,
72023 and through June 30, 2024, "25% of the taxpayer's
8liability for the same calendar month of the preceding year"
9shall be determined as if the rate reduction to 1.25% in Public
10Act 102-700 on sales tax holiday items had not occurred.
11Quarter monthly payment status shall be determined under this
12paragraph as if the rate reduction to 0% in Public Act 102-700
13on food for human consumption that is to be consumed off the
14premises where it is sold (other than alcoholic beverages,
15food consisting of or infused with adult use cannabis, soft
16drinks, and food that has been prepared for immediate
17consumption) had not occurred. For quarter monthly payments
18due under this paragraph on or after July 1, 2023 and through
19June 30, 2024, "25% of the taxpayer's liability for the same
20calendar month of the preceding year" shall be determined as
21if the rate reduction to 0% in Public Act 102-700 had not
22occurred. If any such quarter monthly payment is not paid at
23the time or in the amount required by this Section, then the
24taxpayer shall be liable for penalties and interest on the
25difference between the minimum amount due and the amount of
26such quarter monthly payment actually and timely paid, except

 

 

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1insofar as the taxpayer has previously made payments for that
2month to the Department in excess of the minimum payments
3previously due as provided in this Section. The Department
4shall make reasonable rules and regulations to govern the
5quarter monthly payment amount and quarter monthly payment
6dates for taxpayers who file on other than a calendar monthly
7basis.
8    If any such payment provided for in this Section exceeds
9the taxpayer's liabilities under this Act, the Retailers'
10Occupation Tax Act, the Service Occupation Tax Act and the
11Service Use Tax Act, as shown by an original monthly return,
12the Department shall issue to the taxpayer a credit memorandum
13no later than 30 days after the date of payment, which
14memorandum may be submitted by the taxpayer to the Department
15in payment of tax liability subsequently to be remitted by the
16taxpayer to the Department or be assigned by the taxpayer to a
17similar taxpayer under this Act, the Retailers' Occupation Tax
18Act, the Service Occupation Tax Act or the Service Use Tax Act,
19in accordance with reasonable rules and regulations to be
20prescribed by the Department, except that if such excess
21payment is shown on an original monthly return and is made
22after December 31, 1986, no credit memorandum shall be issued,
23unless requested by the taxpayer. If no such request is made,
24the taxpayer may credit such excess payment against tax
25liability subsequently to be remitted by the taxpayer to the
26Department under this Act, the Retailers' Occupation Tax Act,

 

 

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1the Service Occupation Tax Act or the Service Use Tax Act, in
2accordance with reasonable rules and regulations prescribed by
3the Department. If the Department subsequently determines that
4all or any part of the credit taken was not actually due to the
5taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
6be reduced by 2.1% or 1.75% of the difference between the
7credit taken and that actually due, and the taxpayer shall be
8liable for penalties and interest on such difference.
9    If the retailer is otherwise required to file a monthly
10return and if the retailer's average monthly tax liability to
11the Department does not exceed $200, the Department may
12authorize his returns to be filed on a quarter annual basis,
13with the return for January, February, and March of a given
14year being due by April 20 of such year; with the return for
15April, May and June of a given year being due by July 20 of
16such year; with the return for July, August and September of a
17given year being due by October 20 of such year, and with the
18return for October, November and December of a given year
19being due by January 20 of the following year.
20    If the retailer is otherwise required to file a monthly or
21quarterly return and if the retailer's average monthly tax
22liability to the Department does not exceed $50, the
23Department may authorize his returns to be filed on an annual
24basis, with the return for a given year being due by January 20
25of the following year.
26    Such quarter annual and annual returns, as to form and

 

 

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1substance, shall be subject to the same requirements as
2monthly returns.
3    Notwithstanding any other provision in this Act concerning
4the time within which a retailer may file his return, in the
5case of any retailer who ceases to engage in a kind of business
6which makes him responsible for filing returns under this Act,
7such retailer shall file a final return under this Act with the
8Department not more than one month after discontinuing such
9business.
10    In addition, with respect to motor vehicles, watercraft,
11aircraft, and trailers that are required to be registered with
12an agency of this State, except as otherwise provided in this
13Section, every retailer selling this kind of tangible personal
14property shall file, with the Department, upon a form to be
15prescribed and supplied by the Department, a separate return
16for each such item of tangible personal property which the
17retailer sells, except that if, in the same transaction, (i) a
18retailer of aircraft, watercraft, motor vehicles or trailers
19transfers more than one aircraft, watercraft, motor vehicle or
20trailer to another aircraft, watercraft, motor vehicle or
21trailer retailer for the purpose of resale or (ii) a retailer
22of aircraft, watercraft, motor vehicles, or trailers transfers
23more than one aircraft, watercraft, motor vehicle, or trailer
24to a purchaser for use as a qualifying rolling stock as
25provided in Section 3-55 of this Act, then that seller may
26report the transfer of all the aircraft, watercraft, motor

 

 

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1vehicles or trailers involved in that transaction to the
2Department on the same uniform invoice-transaction reporting
3return form. For purposes of this Section, "watercraft" means
4a Class 2, Class 3, or Class 4 watercraft as defined in Section
53-2 of the Boat Registration and Safety Act, a personal
6watercraft, or any boat equipped with an inboard motor.
7    In addition, with respect to motor vehicles, watercraft,
8aircraft, and trailers that are required to be registered with
9an agency of this State, every person who is engaged in the
10business of leasing or renting such items and who, in
11connection with such business, sells any such item to a
12retailer for the purpose of resale is, notwithstanding any
13other provision of this Section to the contrary, authorized to
14meet the return-filing requirement of this Act by reporting
15the transfer of all the aircraft, watercraft, motor vehicles,
16or trailers transferred for resale during a month to the
17Department on the same uniform invoice-transaction reporting
18return form on or before the 20th of the month following the
19month in which the transfer takes place. Notwithstanding any
20other provision of this Act to the contrary, all returns filed
21under this paragraph must be filed by electronic means in the
22manner and form as required by the Department.
23    The transaction reporting return in the case of motor
24vehicles or trailers that are required to be registered with
25an agency of this State, shall be the same document as the
26Uniform Invoice referred to in Section 5-402 of the Illinois

 

 

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1Vehicle Code and must show the name and address of the seller;
2the name and address of the purchaser; the amount of the
3selling price including the amount allowed by the retailer for
4traded-in property, if any; the amount allowed by the retailer
5for the traded-in tangible personal property, if any, to the
6extent to which Section 2 of this Act allows an exemption for
7the value of traded-in property; the balance payable after
8deducting such trade-in allowance from the total selling
9price; the amount of tax due from the retailer with respect to
10such transaction; the amount of tax collected from the
11purchaser by the retailer on such transaction (or satisfactory
12evidence that such tax is not due in that particular instance,
13if that is claimed to be the fact); the place and date of the
14sale; a sufficient identification of the property sold; such
15other information as is required in Section 5-402 of the
16Illinois Vehicle Code, and such other information as the
17Department may reasonably require.
18    The transaction reporting return in the case of watercraft
19and aircraft must show the name and address of the seller; the
20name and address of the purchaser; the amount of the selling
21price including the amount allowed by the retailer for
22traded-in property, if any; the amount allowed by the retailer
23for the traded-in tangible personal property, if any, to the
24extent to which Section 2 of this Act allows an exemption for
25the value of traded-in property; the balance payable after
26deducting such trade-in allowance from the total selling

 

 

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1price; the amount of tax due from the retailer with respect to
2such transaction; the amount of tax collected from the
3purchaser by the retailer on such transaction (or satisfactory
4evidence that such tax is not due in that particular instance,
5if that is claimed to be the fact); the place and date of the
6sale, a sufficient identification of the property sold, and
7such other information as the Department may reasonably
8require.
9    Such transaction reporting return shall be filed not later
10than 20 days after the date of delivery of the item that is
11being sold, but may be filed by the retailer at any time sooner
12than that if he chooses to do so. The transaction reporting
13return and tax remittance or proof of exemption from the tax
14that is imposed by this Act may be transmitted to the
15Department by way of the State agency with which, or State
16officer with whom, the tangible personal property must be
17titled or registered (if titling or registration is required)
18if the Department and such agency or State officer determine
19that this procedure will expedite the processing of
20applications for title or registration.
21    With each such transaction reporting return, the retailer
22shall remit the proper amount of tax due (or shall submit
23satisfactory evidence that the sale is not taxable if that is
24the case), to the Department or its agents, whereupon the
25Department shall issue, in the purchaser's name, a tax receipt
26(or a certificate of exemption if the Department is satisfied

 

 

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1that the particular sale is tax exempt) which such purchaser
2may submit to the agency with which, or State officer with
3whom, he must title or register the tangible personal property
4that is involved (if titling or registration is required) in
5support of such purchaser's application for an Illinois
6certificate or other evidence of title or registration to such
7tangible personal property.
8    No retailer's failure or refusal to remit tax under this
9Act precludes a user, who has paid the proper tax to the
10retailer, from obtaining his certificate of title or other
11evidence of title or registration (if titling or registration
12is required) upon satisfying the Department that such user has
13paid the proper tax (if tax is due) to the retailer. The
14Department shall adopt appropriate rules to carry out the
15mandate of this paragraph.
16    If the user who would otherwise pay tax to the retailer
17wants the transaction reporting return filed and the payment
18of tax or proof of exemption made to the Department before the
19retailer is willing to take these actions and such user has not
20paid the tax to the retailer, such user may certify to the fact
21of such delay by the retailer, and may (upon the Department
22being satisfied of the truth of such certification) transmit
23the information required by the transaction reporting return
24and the remittance for tax or proof of exemption directly to
25the Department and obtain his tax receipt or exemption
26determination, in which event the transaction reporting return

 

 

HB4655- 49 -LRB103 36446 HLH 67754 b

1and tax remittance (if a tax payment was required) shall be
2credited by the Department to the proper retailer's account
3with the Department, but without the 2.1% or 1.75% discount
4provided for in this Section being allowed. When the user pays
5the tax directly to the Department, he shall pay the tax in the
6same amount and in the same form in which it would be remitted
7if the tax had been remitted to the Department by the retailer.
8    Where a retailer collects the tax with respect to the
9selling price of tangible personal property which he sells and
10the purchaser thereafter returns such tangible personal
11property and the retailer refunds the selling price thereof to
12the purchaser, such retailer shall also refund, to the
13purchaser, the tax so collected from the purchaser. When
14filing his return for the period in which he refunds such tax
15to the purchaser, the retailer may deduct the amount of the tax
16so refunded by him to the purchaser from any other use tax
17which such retailer may be required to pay or remit to the
18Department, as shown by such return, if the amount of the tax
19to be deducted was previously remitted to the Department by
20such retailer. If the retailer has not previously remitted the
21amount of such tax to the Department, he is entitled to no
22deduction under this Act upon refunding such tax to the
23purchaser.
24    Any retailer filing a return under this Section shall also
25include (for the purpose of paying tax thereon) the total tax
26covered by such return upon the selling price of tangible

 

 

HB4655- 50 -LRB103 36446 HLH 67754 b

1personal property purchased by him at retail from a retailer,
2but as to which the tax imposed by this Act was not collected
3from the retailer filing such return, and such retailer shall
4remit the amount of such tax to the Department when filing such
5return.
6    If experience indicates such action to be practicable, the
7Department may prescribe and furnish a combination or joint
8return which will enable retailers, who are required to file
9returns hereunder and also under the Retailers' Occupation Tax
10Act, to furnish all the return information required by both
11Acts on the one form.
12    Where the retailer has more than one business registered
13with the Department under separate registration under this
14Act, such retailer may not file each return that is due as a
15single return covering all such registered businesses, but
16shall file separate returns for each such registered business.
17    Notwithstanding any provision of law to the contrary,
18beginning on the first day of the first month after the
19Arlington Megaproject is established under Division 22 of
20Article 10 of the Property Tax Code, all taxes collected under
21this Act from persons located within the Arlington Megaproject
22shall be deposited into the Arlington Megaproject
23Infrastructure Fund.
24    Beginning January 1, 1990, each month the Department shall
25pay into the State and Local Sales Tax Reform Fund, a special
26fund in the State Treasury which is hereby created, the net

 

 

HB4655- 51 -LRB103 36446 HLH 67754 b

1revenue realized for the preceding month from the 1% tax
2imposed under this Act.
3    Beginning January 1, 1990, each month the Department shall
4pay into the County and Mass Transit District Fund 4% of the
5net revenue realized for the preceding month from the 6.25%
6general rate on the selling price of tangible personal
7property which is purchased outside Illinois at retail from a
8retailer and which is titled or registered by an agency of this
9State's government.
10    Beginning January 1, 1990, each month the Department shall
11pay into the State and Local Sales Tax Reform Fund, a special
12fund in the State Treasury, 20% of the net revenue realized for
13the preceding month from the 6.25% general rate on the selling
14price of tangible personal property, other than (i) tangible
15personal property which is purchased outside Illinois at
16retail from a retailer and which is titled or registered by an
17agency of this State's government and (ii) aviation fuel sold
18on or after December 1, 2019. This exception for aviation fuel
19only applies for so long as the revenue use requirements of 49
20U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
21    For aviation fuel sold on or after December 1, 2019, each
22month the Department shall pay into the State Aviation Program
23Fund 20% of the net revenue realized for the preceding month
24from the 6.25% general rate on the selling price of aviation
25fuel, less an amount estimated by the Department to be
26required for refunds of the 20% portion of the tax on aviation

 

 

HB4655- 52 -LRB103 36446 HLH 67754 b

1fuel under this Act, which amount shall be deposited into the
2Aviation Fuel Sales Tax Refund Fund. The Department shall only
3pay moneys into the State Aviation Program Fund and the
4Aviation Fuels Sales Tax Refund Fund under this Act for so long
5as the revenue use requirements of 49 U.S.C. 47107(b) and 49
6U.S.C. 47133 are binding on the State.
7    Beginning August 1, 2000, each month the Department shall
8pay into the State and Local Sales Tax Reform Fund 100% of the
9net revenue realized for the preceding month from the 1.25%
10rate on the selling price of motor fuel and gasohol. If, in any
11month, the tax on sales tax holiday items, as defined in
12Section 3-6, is imposed at the rate of 1.25%, then the
13Department shall pay 100% of the net revenue realized for that
14month from the 1.25% rate on the selling price of sales tax
15holiday items into the State and Local Sales Tax Reform Fund.
16    Beginning January 1, 1990, each month the Department shall
17pay into the Local Government Tax Fund 16% of the net revenue
18realized for the preceding month from the 6.25% general rate
19on the selling price of tangible personal property which is
20purchased outside Illinois at retail from a retailer and which
21is titled or registered by an agency of this State's
22government.
23    Beginning October 1, 2009, each month the Department shall
24pay into the Capital Projects Fund an amount that is equal to
25an amount estimated by the Department to represent 80% of the
26net revenue realized for the preceding month from the sale of

 

 

HB4655- 53 -LRB103 36446 HLH 67754 b

1candy, grooming and hygiene products, and soft drinks that had
2been taxed at a rate of 1% prior to September 1, 2009 but that
3are now taxed at 6.25%.
4    Beginning July 1, 2011, each month the Department shall
5pay into the Clean Air Act Permit Fund 80% of the net revenue
6realized for the preceding month from the 6.25% general rate
7on the selling price of sorbents used in Illinois in the
8process of sorbent injection as used to comply with the
9Environmental Protection Act or the federal Clean Air Act, but
10the total payment into the Clean Air Act Permit Fund under this
11Act and the Retailers' Occupation Tax Act shall not exceed
12$2,000,000 in any fiscal year.
13    Beginning July 1, 2013, each month the Department shall
14pay into the Underground Storage Tank Fund from the proceeds
15collected under this Act, the Service Use Tax Act, the Service
16Occupation Tax Act, and the Retailers' Occupation Tax Act an
17amount equal to the average monthly deficit in the Underground
18Storage Tank Fund during the prior year, as certified annually
19by the Illinois Environmental Protection Agency, but the total
20payment into the Underground Storage Tank Fund under this Act,
21the Service Use Tax Act, the Service Occupation Tax Act, and
22the Retailers' Occupation Tax Act shall not exceed $18,000,000
23in any State fiscal year. As used in this paragraph, the
24"average monthly deficit" shall be equal to the difference
25between the average monthly claims for payment by the fund and
26the average monthly revenues deposited into the fund,

 

 

HB4655- 54 -LRB103 36446 HLH 67754 b

1excluding payments made pursuant to this paragraph.
2    Beginning July 1, 2015, of the remainder of the moneys
3received by the Department under this Act, the Service Use Tax
4Act, the Service Occupation Tax Act, and the Retailers'
5Occupation Tax Act, each month the Department shall deposit
6$500,000 into the State Crime Laboratory Fund.
7    Of the remainder of the moneys received by the Department
8pursuant to this Act, (a) 1.75% thereof shall be paid into the
9Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
10and after July 1, 1989, 3.8% thereof shall be paid into the
11Build Illinois Fund; provided, however, that if in any fiscal
12year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
13may be, of the moneys received by the Department and required
14to be paid into the Build Illinois Fund pursuant to Section 3
15of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
16Act, Section 9 of the Service Use Tax Act, and Section 9 of the
17Service Occupation Tax Act, such Acts being hereinafter called
18the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
19may be, of moneys being hereinafter called the "Tax Act
20Amount", and (2) the amount transferred to the Build Illinois
21Fund from the State and Local Sales Tax Reform Fund shall be
22less than the Annual Specified Amount (as defined in Section 3
23of the Retailers' Occupation Tax Act), an amount equal to the
24difference shall be immediately paid into the Build Illinois
25Fund from other moneys received by the Department pursuant to
26the Tax Acts; and further provided, that if on the last

 

 

HB4655- 55 -LRB103 36446 HLH 67754 b

1business day of any month the sum of (1) the Tax Act Amount
2required to be deposited into the Build Illinois Bond Account
3in the Build Illinois Fund during such month and (2) the amount
4transferred during such month to the Build Illinois Fund from
5the State and Local Sales Tax Reform Fund shall have been less
6than 1/12 of the Annual Specified Amount, an amount equal to
7the difference shall be immediately paid into the Build
8Illinois Fund from other moneys received by the Department
9pursuant to the Tax Acts; and, further provided, that in no
10event shall the payments required under the preceding proviso
11result in aggregate payments into the Build Illinois Fund
12pursuant to this clause (b) for any fiscal year in excess of
13the greater of (i) the Tax Act Amount or (ii) the Annual
14Specified Amount for such fiscal year; and, further provided,
15that the amounts payable into the Build Illinois Fund under
16this clause (b) shall be payable only until such time as the
17aggregate amount on deposit under each trust indenture
18securing Bonds issued and outstanding pursuant to the Build
19Illinois Bond Act is sufficient, taking into account any
20future investment income, to fully provide, in accordance with
21such indenture, for the defeasance of or the payment of the
22principal of, premium, if any, and interest on the Bonds
23secured by such indenture and on any Bonds expected to be
24issued thereafter and all fees and costs payable with respect
25thereto, all as certified by the Director of the Bureau of the
26Budget (now Governor's Office of Management and Budget). If on

 

 

HB4655- 56 -LRB103 36446 HLH 67754 b

1the last business day of any month in which Bonds are
2outstanding pursuant to the Build Illinois Bond Act, the
3aggregate of the moneys deposited in the Build Illinois Bond
4Account in the Build Illinois Fund in such month shall be less
5than the amount required to be transferred in such month from
6the Build Illinois Bond Account to the Build Illinois Bond
7Retirement and Interest Fund pursuant to Section 13 of the
8Build Illinois Bond Act, an amount equal to such deficiency
9shall be immediately paid from other moneys received by the
10Department pursuant to the Tax Acts to the Build Illinois
11Fund; provided, however, that any amounts paid to the Build
12Illinois Fund in any fiscal year pursuant to this sentence
13shall be deemed to constitute payments pursuant to clause (b)
14of the preceding sentence and shall reduce the amount
15otherwise payable for such fiscal year pursuant to clause (b)
16of the preceding sentence. The moneys received by the
17Department pursuant to this Act and required to be deposited
18into the Build Illinois Fund are subject to the pledge, claim
19and charge set forth in Section 12 of the Build Illinois Bond
20Act.
21    Subject to payment of amounts into the Build Illinois Fund
22as provided in the preceding paragraph or in any amendment
23thereto hereafter enacted, the following specified monthly
24installment of the amount requested in the certificate of the
25Chairman of the Metropolitan Pier and Exposition Authority
26provided under Section 8.25f of the State Finance Act, but not

 

 

HB4655- 57 -LRB103 36446 HLH 67754 b

1in excess of the sums designated as "Total Deposit", shall be
2deposited in the aggregate from collections under Section 9 of
3the Use Tax Act, Section 9 of the Service Use Tax Act, Section
49 of the Service Occupation Tax Act, and Section 3 of the
5Retailers' Occupation Tax Act into the McCormick Place
6Expansion Project Fund in the specified fiscal years.
7Fiscal YearTotal Deposit
81993         $0
91994 53,000,000
101995 58,000,000
111996 61,000,000
121997 64,000,000
131998 68,000,000
141999 71,000,000
152000 75,000,000
162001 80,000,000
172002 93,000,000
182003 99,000,000
192004103,000,000
202005108,000,000
212006113,000,000
222007119,000,000
232008126,000,000
242009132,000,000
252010139,000,000
262011146,000,000

 

 

HB4655- 58 -LRB103 36446 HLH 67754 b

12012153,000,000
22013161,000,000
32014170,000,000
42015179,000,000
52016189,000,000
62017199,000,000
72018210,000,000
82019221,000,000
92020233,000,000
102021300,000,000
112022300,000,000
122023300,000,000
132024 300,000,000
142025 300,000,000
152026 300,000,000
162027 375,000,000
172028 375,000,000
182029 375,000,000
192030 375,000,000
202031 375,000,000
212032 375,000,000
222033 375,000,000
232034375,000,000
242035375,000,000
252036450,000,000
26and

 

 

HB4655- 59 -LRB103 36446 HLH 67754 b

1each fiscal year
2thereafter that bonds
3are outstanding under
4Section 13.2 of the
5Metropolitan Pier and
6Exposition Authority Act,
7but not after fiscal year 2060.
8    Beginning July 20, 1993 and in each month of each fiscal
9year thereafter, one-eighth of the amount requested in the
10certificate of the Chairman of the Metropolitan Pier and
11Exposition Authority for that fiscal year, less the amount
12deposited into the McCormick Place Expansion Project Fund by
13the State Treasurer in the respective month under subsection
14(g) of Section 13 of the Metropolitan Pier and Exposition
15Authority Act, plus cumulative deficiencies in the deposits
16required under this Section for previous months and years,
17shall be deposited into the McCormick Place Expansion Project
18Fund, until the full amount requested for the fiscal year, but
19not in excess of the amount specified above as "Total
20Deposit", has been deposited.
21    Subject to payment of amounts into the Capital Projects
22Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
23and the McCormick Place Expansion Project Fund pursuant to the
24preceding paragraphs or in any amendments thereto hereafter
25enacted, for aviation fuel sold on or after December 1, 2019,
26the Department shall each month deposit into the Aviation Fuel

 

 

HB4655- 60 -LRB103 36446 HLH 67754 b

1Sales Tax Refund Fund an amount estimated by the Department to
2be required for refunds of the 80% portion of the tax on
3aviation fuel under this Act. The Department shall only
4deposit moneys into the Aviation Fuel Sales Tax Refund Fund
5under this paragraph for so long as the revenue use
6requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
7binding on the State.
8    Subject to payment of amounts into the Build Illinois Fund
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, beginning July 1, 1993 and ending on September 30,
122013, the Department shall each month pay into the Illinois
13Tax Increment Fund 0.27% of 80% of the net revenue realized for
14the preceding month from the 6.25% general rate on the selling
15price of tangible personal property.
16    Subject to payment of amounts into the Build Illinois
17Fund, the McCormick Place Expansion Project Fund, the Illinois
18Tax Increment Fund, and the Energy Infrastructure Fund
19pursuant to the preceding paragraphs or in any amendments to
20this Section hereafter enacted, beginning on the first day of
21the first calendar month to occur on or after August 26, 2014
22(the effective date of Public Act 98-1098), each month, from
23the collections made under Section 9 of the Use Tax Act,
24Section 9 of the Service Use Tax Act, Section 9 of the Service
25Occupation Tax Act, and Section 3 of the Retailers' Occupation
26Tax Act, the Department shall pay into the Tax Compliance and

 

 

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1Administration Fund, to be used, subject to appropriation, to
2fund additional auditors and compliance personnel at the
3Department of Revenue, an amount equal to 1/12 of 5% of 80% of
4the cash receipts collected during the preceding fiscal year
5by the Audit Bureau of the Department under the Use Tax Act,
6the Service Use Tax Act, the Service Occupation Tax Act, the
7Retailers' Occupation Tax Act, and associated local occupation
8and use taxes administered by the Department.
9    Subject to payments of amounts into the Build Illinois
10Fund, the McCormick Place Expansion Project Fund, the Illinois
11Tax Increment Fund, and the Tax Compliance and Administration
12Fund as provided in this Section, beginning on July 1, 2018 the
13Department shall pay each month into the Downstate Public
14Transportation Fund the moneys required to be so paid under
15Section 2-3 of the Downstate Public Transportation Act.
16    Subject to successful execution and delivery of a
17public-private agreement between the public agency and private
18entity and completion of the civic build, beginning on July 1,
192023, of the remainder of the moneys received by the
20Department under the Use Tax Act, the Service Use Tax Act, the
21Service Occupation Tax Act, and this Act, the Department shall
22deposit the following specified deposits in the aggregate from
23collections under the Use Tax Act, the Service Use Tax Act, the
24Service Occupation Tax Act, and the Retailers' Occupation Tax
25Act, as required under Section 8.25g of the State Finance Act
26for distribution consistent with the Public-Private

 

 

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1Partnership for Civic and Transit Infrastructure Project Act.
2The moneys received by the Department pursuant to this Act and
3required to be deposited into the Civic and Transit
4Infrastructure Fund are subject to the pledge, claim, and
5charge set forth in Section 25-55 of the Public-Private
6Partnership for Civic and Transit Infrastructure Project Act.
7As used in this paragraph, "civic build", "private entity",
8"public-private agreement", and "public agency" have the
9meanings provided in Section 25-10 of the Public-Private
10Partnership for Civic and Transit Infrastructure Project Act.
11        Fiscal Year............................Total Deposit
12        2024....................................$200,000,000
13        2025....................................$206,000,000
14        2026....................................$212,200,000
15        2027....................................$218,500,000
16        2028....................................$225,100,000
17        2029....................................$288,700,000
18        2030....................................$298,900,000
19        2031....................................$309,300,000
20        2032....................................$320,100,000
21        2033....................................$331,200,000
22        2034....................................$341,200,000
23        2035....................................$351,400,000
24        2036....................................$361,900,000
25        2037....................................$372,800,000
26        2038....................................$384,000,000

 

 

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1        2039....................................$395,500,000
2        2040....................................$407,400,000
3        2041....................................$419,600,000
4        2042....................................$432,200,000
5        2043....................................$445,100,000
6    Beginning July 1, 2021 and until July 1, 2022, subject to
7the payment of amounts into the State and Local Sales Tax
8Reform Fund, the Build Illinois Fund, the McCormick Place
9Expansion Project Fund, the Illinois Tax Increment Fund, and
10the Tax Compliance and Administration Fund as provided in this
11Section, the Department shall pay each month into the Road
12Fund the amount estimated to represent 16% of the net revenue
13realized from the taxes imposed on motor fuel and gasohol.
14Beginning July 1, 2022 and until July 1, 2023, subject to the
15payment of amounts into the State and Local Sales Tax Reform
16Fund, the Build Illinois Fund, the McCormick Place Expansion
17Project Fund, the Illinois Tax Increment Fund, and the Tax
18Compliance and Administration Fund as provided in this
19Section, the Department shall pay each month into the Road
20Fund the amount estimated to represent 32% of the net revenue
21realized from the taxes imposed on motor fuel and gasohol.
22Beginning July 1, 2023 and until July 1, 2024, subject to the
23payment of amounts into the State and Local Sales Tax Reform
24Fund, the Build Illinois Fund, the McCormick Place Expansion
25Project Fund, the Illinois Tax Increment Fund, and the Tax
26Compliance and Administration Fund as provided in this

 

 

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1Section, the Department shall pay each month into the Road
2Fund the amount estimated to represent 48% of the net revenue
3realized from the taxes imposed on motor fuel and gasohol.
4Beginning July 1, 2024 and until July 1, 2025, subject to the
5payment of amounts into the State and Local Sales Tax Reform
6Fund, the Build Illinois Fund, the McCormick Place Expansion
7Project Fund, the Illinois Tax Increment Fund, and the Tax
8Compliance and Administration Fund as provided in this
9Section, the Department shall pay each month into the Road
10Fund the amount estimated to represent 64% of the net revenue
11realized from the taxes imposed on motor fuel and gasohol.
12Beginning on July 1, 2025, subject to the payment of amounts
13into the State and Local Sales Tax Reform Fund, the Build
14Illinois Fund, the McCormick Place Expansion Project Fund, the
15Illinois Tax Increment Fund, and the Tax Compliance and
16Administration Fund as provided in this Section, the
17Department shall pay each month into the Road Fund the amount
18estimated to represent 80% of the net revenue realized from
19the taxes imposed on motor fuel and gasohol. As used in this
20paragraph "motor fuel" has the meaning given to that term in
21Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
22meaning given to that term in Section 3-40 of this Act.
23    Of the remainder of the moneys received by the Department
24pursuant to this Act, 75% thereof shall be paid into the State
25Treasury and 25% shall be reserved in a special account and
26used only for the transfer to the Common School Fund as part of

 

 

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1the monthly transfer from the General Revenue Fund in
2accordance with Section 8a of the State Finance Act.
3    As soon as possible after the first day of each month, upon
4certification of the Department of Revenue, the Comptroller
5shall order transferred and the Treasurer shall transfer from
6the General Revenue Fund to the Motor Fuel Tax Fund an amount
7equal to 1.7% of 80% of the net revenue realized under this Act
8for the second preceding month. Beginning April 1, 2000, this
9transfer is no longer required and shall not be made.
10    Net revenue realized for a month shall be the revenue
11collected by the State pursuant to this Act, less the amount
12paid out during that month as refunds to taxpayers for
13overpayment of liability.
14    For greater simplicity of administration, manufacturers,
15importers and wholesalers whose products are sold at retail in
16Illinois by numerous retailers, and who wish to do so, may
17assume the responsibility for accounting and paying to the
18Department all tax accruing under this Act with respect to
19such sales, if the retailers who are affected do not make
20written objection to the Department to this arrangement.
21(Source: P.A. 102-700, Article 60, Section 60-15, eff.
224-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;
23102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff.
247-28-23.)
 
25    Section 910. ***ADDITIONAL INFORMATION*** is amended by

 

 

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1changing Section 9 ***PLACE IN TEXT BELOW***
2The Service Use Tax Act is amended by changing Sections 3-5 and
39 as follows:
 
4    (35 ILCS 110/3-5)
5    Sec. 3-5. Exemptions. Use of the following tangible
6personal property is exempt from the tax imposed by this Act:
7    (1) Personal property purchased from a corporation,
8society, association, foundation, institution, or
9organization, other than a limited liability company, that is
10organized and operated as a not-for-profit service enterprise
11for the benefit of persons 65 years of age or older if the
12personal property was not purchased by the enterprise for the
13purpose of resale by the enterprise.
14    (2) Personal property purchased by a non-profit Illinois
15county fair association for use in conducting, operating, or
16promoting the county fair.
17    (3) Personal property purchased by a not-for-profit arts
18or cultural organization that establishes, by proof required
19by the Department by rule, that it has received an exemption
20under Section 501(c)(3) of the Internal Revenue Code and that
21is organized and operated primarily for the presentation or
22support of arts or cultural programming, activities, or
23services. These organizations include, but are not limited to,
24music and dramatic arts organizations such as symphony
25orchestras and theatrical groups, arts and cultural service

 

 

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1organizations, local arts councils, visual arts organizations,
2and media arts organizations. On and after July 1, 2001 (the
3effective date of Public Act 92-35), however, an entity
4otherwise eligible for this exemption shall not make tax-free
5purchases unless it has an active identification number issued
6by the Department.
7    (4) Legal tender, currency, medallions, or gold or silver
8coinage issued by the State of Illinois, the government of the
9United States of America, or the government of any foreign
10country, and bullion.
11    (5) Until July 1, 2003 and beginning again on September 1,
122004 through August 30, 2014, graphic arts machinery and
13equipment, including repair and replacement parts, both new
14and used, and including that manufactured on special order or
15purchased for lease, certified by the purchaser to be used
16primarily for graphic arts production. Equipment includes
17chemicals or chemicals acting as catalysts but only if the
18chemicals or chemicals acting as catalysts effect a direct and
19immediate change upon a graphic arts product. Beginning on
20July 1, 2017, graphic arts machinery and equipment is included
21in the manufacturing and assembling machinery and equipment
22exemption under Section 2 of this Act.
23    (6) Personal property purchased from a teacher-sponsored
24student organization affiliated with an elementary or
25secondary school located in Illinois.
26    (7) Farm machinery and equipment, both new and used,

 

 

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1including that manufactured on special order, certified by the
2purchaser to be used primarily for production agriculture or
3State or federal agricultural programs, including individual
4replacement parts for the machinery and equipment, including
5machinery and equipment purchased for lease, and including
6implements of husbandry defined in Section 1-130 of the
7Illinois Vehicle Code, farm machinery and agricultural
8chemical and fertilizer spreaders, and nurse wagons required
9to be registered under Section 3-809 of the Illinois Vehicle
10Code, but excluding other motor vehicles required to be
11registered under the Illinois Vehicle Code. Horticultural
12polyhouses or hoop houses used for propagating, growing, or
13overwintering plants shall be considered farm machinery and
14equipment under this item (7). Agricultural chemical tender
15tanks and dry boxes shall include units sold separately from a
16motor vehicle required to be licensed and units sold mounted
17on a motor vehicle required to be licensed if the selling price
18of the tender is separately stated.
19    Farm machinery and equipment shall include precision
20farming equipment that is installed or purchased to be
21installed on farm machinery and equipment, including, but not
22limited to, tractors, harvesters, sprayers, planters, seeders,
23or spreaders. Precision farming equipment includes, but is not
24limited to, soil testing sensors, computers, monitors,
25software, global positioning and mapping systems, and other
26such equipment.

 

 

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1    Farm machinery and equipment also includes computers,
2sensors, software, and related equipment used primarily in the
3computer-assisted operation of production agriculture
4facilities, equipment, and activities such as, but not limited
5to, the collection, monitoring, and correlation of animal and
6crop data for the purpose of formulating animal diets and
7agricultural chemicals.
8    Beginning on January 1, 2024, farm machinery and equipment
9also includes electrical power generation equipment used
10primarily for production agriculture.
11    This item (7) is exempt from the provisions of Section
123-75.
13    (8) Until June 30, 2013, fuel and petroleum products sold
14to or used by an air common carrier, certified by the carrier
15to be used for consumption, shipment, or storage in the
16conduct of its business as an air common carrier, for a flight
17destined for or returning from a location or locations outside
18the United States without regard to previous or subsequent
19domestic stopovers.
20    Beginning July 1, 2013, fuel and petroleum products sold
21to or used by an air carrier, certified by the carrier to be
22used for consumption, shipment, or storage in the conduct of
23its business as an air common carrier, for a flight that (i) is
24engaged in foreign trade or is engaged in trade between the
25United States and any of its possessions and (ii) transports
26at least one individual or package for hire from the city of

 

 

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1origination to the city of final destination on the same
2aircraft, without regard to a change in the flight number of
3that aircraft.
4    (9) Proceeds of mandatory service charges separately
5stated on customers' bills for the purchase and consumption of
6food and beverages acquired as an incident to the purchase of a
7service from a serviceman, to the extent that the proceeds of
8the service charge are in fact turned over as tips or as a
9substitute for tips to the employees who participate directly
10in preparing, serving, hosting or cleaning up the food or
11beverage function with respect to which the service charge is
12imposed.
13    (10) Until July 1, 2003, oil field exploration, drilling,
14and production equipment, including (i) rigs and parts of
15rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
16pipe and tubular goods, including casing and drill strings,
17(iii) pumps and pump-jack units, (iv) storage tanks and flow
18lines, (v) any individual replacement part for oil field
19exploration, drilling, and production equipment, and (vi)
20machinery and equipment purchased for lease; but excluding
21motor vehicles required to be registered under the Illinois
22Vehicle Code.
23    (11) Proceeds from the sale of photoprocessing machinery
24and equipment, including repair and replacement parts, both
25new and used, including that manufactured on special order,
26certified by the purchaser to be used primarily for

 

 

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1photoprocessing, and including photoprocessing machinery and
2equipment purchased for lease.
3    (12) Until July 1, 2028, coal and aggregate exploration,
4mining, off-highway hauling, processing, maintenance, and
5reclamation equipment, including replacement parts and
6equipment, and including equipment purchased for lease, but
7excluding motor vehicles required to be registered under the
8Illinois Vehicle Code. The changes made to this Section by
9Public Act 97-767 apply on and after July 1, 2003, but no claim
10for credit or refund is allowed on or after August 16, 2013
11(the effective date of Public Act 98-456) for such taxes paid
12during the period beginning July 1, 2003 and ending on August
1316, 2013 (the effective date of Public Act 98-456).
14    (13) Semen used for artificial insemination of livestock
15for direct agricultural production.
16    (14) Horses, or interests in horses, registered with and
17meeting the requirements of any of the Arabian Horse Club
18Registry of America, Appaloosa Horse Club, American Quarter
19Horse Association, United States Trotting Association, or
20Jockey Club, as appropriate, used for purposes of breeding or
21racing for prizes. This item (14) is exempt from the
22provisions of Section 3-75, and the exemption provided for
23under this item (14) applies for all periods beginning May 30,
241995, but no claim for credit or refund is allowed on or after
25January 1, 2008 (the effective date of Public Act 95-88) for
26such taxes paid during the period beginning May 30, 2000 and

 

 

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1ending on January 1, 2008 (the effective date of Public Act
295-88).
3    (15) Computers and communications equipment utilized for
4any hospital purpose and equipment used in the diagnosis,
5analysis, or treatment of hospital patients purchased by a
6lessor who leases the equipment, under a lease of one year or
7longer executed or in effect at the time the lessor would
8otherwise be subject to the tax imposed by this Act, to a
9hospital that has been issued an active tax exemption
10identification number by the Department under Section 1g of
11the Retailers' Occupation Tax Act. If the equipment is leased
12in a manner that does not qualify for this exemption or is used
13in any other non-exempt manner, the lessor shall be liable for
14the tax imposed under this Act or the Use Tax Act, as the case
15may be, based on the fair market value of the property at the
16time the non-qualifying use occurs. No lessor shall collect or
17attempt to collect an amount (however designated) that
18purports to reimburse that lessor for the tax imposed by this
19Act or the Use Tax Act, as the case may be, if the tax has not
20been paid by the lessor. If a lessor improperly collects any
21such amount from the lessee, the lessee shall have a legal
22right to claim a refund of that amount from the lessor. If,
23however, that amount is not refunded to the lessee for any
24reason, the lessor is liable to pay that amount to the
25Department.
26    (16) Personal property purchased by a lessor who leases

 

 

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1the property, under a lease of one year or longer executed or
2in effect at the time the lessor would otherwise be subject to
3the tax imposed by this Act, to a governmental body that has
4been issued an active tax exemption identification number by
5the Department under Section 1g of the Retailers' Occupation
6Tax Act. If the property is leased in a manner that does not
7qualify for this exemption or is used in any other non-exempt
8manner, the lessor shall be liable for the tax imposed under
9this Act or the Use Tax Act, as the case may be, based on the
10fair market value of the property at the time the
11non-qualifying use occurs. No lessor shall collect or attempt
12to collect an amount (however designated) that purports to
13reimburse that lessor for the tax imposed by this Act or the
14Use Tax Act, as the case may be, if the tax has not been paid
15by the lessor. If a lessor improperly collects any such amount
16from the lessee, the lessee shall have a legal right to claim a
17refund of that amount from the lessor. If, however, that
18amount is not refunded to the lessee for any reason, the lessor
19is liable to pay that amount to the Department.
20    (17) Beginning with taxable years ending on or after
21December 31, 1995 and ending with taxable years ending on or
22before December 31, 2004, personal property that is donated
23for disaster relief to be used in a State or federally declared
24disaster area in Illinois or bordering Illinois by a
25manufacturer or retailer that is registered in this State to a
26corporation, society, association, foundation, or institution

 

 

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1that has been issued a sales tax exemption identification
2number by the Department that assists victims of the disaster
3who reside within the declared disaster area.
4    (18) Beginning with taxable years ending on or after
5December 31, 1995 and ending with taxable years ending on or
6before December 31, 2004, personal property that is used in
7the performance of infrastructure repairs in this State,
8including, but not limited to, municipal roads and streets,
9access roads, bridges, sidewalks, waste disposal systems,
10water and sewer line extensions, water distribution and
11purification facilities, storm water drainage and retention
12facilities, and sewage treatment facilities, resulting from a
13State or federally declared disaster in Illinois or bordering
14Illinois when such repairs are initiated on facilities located
15in the declared disaster area within 6 months after the
16disaster.
17    (19) Beginning July 1, 1999, game or game birds purchased
18at a "game breeding and hunting preserve area" as that term is
19used in the Wildlife Code. This paragraph is exempt from the
20provisions of Section 3-75.
21    (20) A motor vehicle, as that term is defined in Section
221-146 of the Illinois Vehicle Code, that is donated to a
23corporation, limited liability company, society, association,
24foundation, or institution that is determined by the
25Department to be organized and operated exclusively for
26educational purposes. For purposes of this exemption, "a

 

 

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1corporation, limited liability company, society, association,
2foundation, or institution organized and operated exclusively
3for educational purposes" means all tax-supported public
4schools, private schools that offer systematic instruction in
5useful branches of learning by methods common to public
6schools and that compare favorably in their scope and
7intensity with the course of study presented in tax-supported
8schools, and vocational or technical schools or institutes
9organized and operated exclusively to provide a course of
10study of not less than 6 weeks duration and designed to prepare
11individuals to follow a trade or to pursue a manual,
12technical, mechanical, industrial, business, or commercial
13occupation.
14    (21) Beginning January 1, 2000, personal property,
15including food, purchased through fundraising events for the
16benefit of a public or private elementary or secondary school,
17a group of those schools, or one or more school districts if
18the events are sponsored by an entity recognized by the school
19district that consists primarily of volunteers and includes
20parents and teachers of the school children. This paragraph
21does not apply to fundraising events (i) for the benefit of
22private home instruction or (ii) for which the fundraising
23entity purchases the personal property sold at the events from
24another individual or entity that sold the property for the
25purpose of resale by the fundraising entity and that profits
26from the sale to the fundraising entity. This paragraph is

 

 

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1exempt from the provisions of Section 3-75.
2    (22) Beginning January 1, 2000 and through December 31,
32001, new or used automatic vending machines that prepare and
4serve hot food and beverages, including coffee, soup, and
5other items, and replacement parts for these machines.
6Beginning January 1, 2002 and through June 30, 2003, machines
7and parts for machines used in commercial, coin-operated
8amusement and vending business if a use or occupation tax is
9paid on the gross receipts derived from the use of the
10commercial, coin-operated amusement and vending machines. This
11paragraph is exempt from the provisions of Section 3-75.
12    (23) Beginning August 23, 2001 and through June 30, 2016,
13food for human consumption that is to be consumed off the
14premises where it is sold (other than alcoholic beverages,
15soft drinks, and food that has been prepared for immediate
16consumption) and prescription and nonprescription medicines,
17drugs, medical appliances, and insulin, urine testing
18materials, syringes, and needles used by diabetics, for human
19use, when purchased for use by a person receiving medical
20assistance under Article V of the Illinois Public Aid Code who
21resides in a licensed long-term care facility, as defined in
22the Nursing Home Care Act, or in a licensed facility as defined
23in the ID/DD Community Care Act, the MC/DD Act, or the
24Specialized Mental Health Rehabilitation Act of 2013.
25    (24) Beginning on August 2, 2001 (the effective date of
26Public Act 92-227), computers and communications equipment

 

 

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1utilized for any hospital purpose and equipment used in the
2diagnosis, analysis, or treatment of hospital patients
3purchased by a lessor who leases the equipment, under a lease
4of one year or longer executed or in effect at the time the
5lessor would otherwise be subject to the tax imposed by this
6Act, to a hospital that has been issued an active tax exemption
7identification number by the Department under Section 1g of
8the Retailers' Occupation Tax Act. If the equipment is leased
9in a manner that does not qualify for this exemption or is used
10in any other nonexempt manner, the lessor shall be liable for
11the tax imposed under this Act or the Use Tax Act, as the case
12may be, based on the fair market value of the property at the
13time the nonqualifying use occurs. No lessor shall collect or
14attempt to collect an amount (however designated) that
15purports to reimburse that lessor for the tax imposed by this
16Act or the Use Tax Act, as the case may be, if the tax has not
17been paid by the lessor. If a lessor improperly collects any
18such amount from the lessee, the lessee shall have a legal
19right to claim a refund of that amount from the lessor. If,
20however, that amount is not refunded to the lessee for any
21reason, the lessor is liable to pay that amount to the
22Department. This paragraph is exempt from the provisions of
23Section 3-75.
24    (25) Beginning on August 2, 2001 (the effective date of
25Public Act 92-227), personal property purchased by a lessor
26who leases the property, under a lease of one year or longer

 

 

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1executed or in effect at the time the lessor would otherwise be
2subject to the tax imposed by this Act, to a governmental body
3that has been issued an active tax exemption identification
4number by the Department under Section 1g of the Retailers'
5Occupation Tax Act. If the property is leased in a manner that
6does not qualify for this exemption or is used in any other
7nonexempt manner, the lessor shall be liable for the tax
8imposed under this Act or the Use Tax Act, as the case may be,
9based on the fair market value of the property at the time the
10nonqualifying use occurs. No lessor shall collect or attempt
11to collect an amount (however designated) that purports to
12reimburse that lessor for the tax imposed by this Act or the
13Use Tax Act, as the case may be, if the tax has not been paid
14by the lessor. If a lessor improperly collects any such amount
15from the lessee, the lessee shall have a legal right to claim a
16refund of that amount from the lessor. If, however, that
17amount is not refunded to the lessee for any reason, the lessor
18is liable to pay that amount to the Department. This paragraph
19is exempt from the provisions of Section 3-75.
20    (26) Beginning January 1, 2008, tangible personal property
21used in the construction or maintenance of a community water
22supply, as defined under Section 3.145 of the Environmental
23Protection Act, that is operated by a not-for-profit
24corporation that holds a valid water supply permit issued
25under Title IV of the Environmental Protection Act. This
26paragraph is exempt from the provisions of Section 3-75.

 

 

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1    (27) Beginning January 1, 2010 and continuing through
2December 31, 2029, materials, parts, equipment, components,
3and furnishings incorporated into or upon an aircraft as part
4of the modification, refurbishment, completion, replacement,
5repair, or maintenance of the aircraft. This exemption
6includes consumable supplies used in the modification,
7refurbishment, completion, replacement, repair, and
8maintenance of aircraft. However, until January 1, 2024, this
9exemption excludes any materials, parts, equipment,
10components, and consumable supplies used in the modification,
11replacement, repair, and maintenance of aircraft engines or
12power plants, whether such engines or power plants are
13installed or uninstalled upon any such aircraft. "Consumable
14supplies" include, but are not limited to, adhesive, tape,
15sandpaper, general purpose lubricants, cleaning solution,
16latex gloves, and protective films.
17    Beginning January 1, 2010 and continuing through December
1831, 2023, this exemption applies only to the use of qualifying
19tangible personal property transferred incident to the
20modification, refurbishment, completion, replacement, repair,
21or maintenance of aircraft by persons who (i) hold an Air
22Agency Certificate and are empowered to operate an approved
23repair station by the Federal Aviation Administration, (ii)
24have a Class IV Rating, and (iii) conduct operations in
25accordance with Part 145 of the Federal Aviation Regulations.
26From January 1, 2024 through December 31, 2029, this exemption

 

 

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1applies only to the use of qualifying tangible personal
2property by: (A) persons who modify, refurbish, complete,
3repair, replace, or maintain aircraft and who (i) hold an Air
4Agency Certificate and are empowered to operate an approved
5repair station by the Federal Aviation Administration, (ii)
6have a Class IV Rating, and (iii) conduct operations in
7accordance with Part 145 of the Federal Aviation Regulations;
8and (B) persons who engage in the modification, replacement,
9repair, and maintenance of aircraft engines or power plants
10without regard to whether or not those persons meet the
11qualifications of item (A).
12    The exemption does not include aircraft operated by a
13commercial air carrier providing scheduled passenger air
14service pursuant to authority issued under Part 121 or Part
15129 of the Federal Aviation Regulations. The changes made to
16this paragraph (27) by Public Act 98-534 are declarative of
17existing law. It is the intent of the General Assembly that the
18exemption under this paragraph (27) applies continuously from
19January 1, 2010 through December 31, 2024; however, no claim
20for credit or refund is allowed for taxes paid as a result of
21the disallowance of this exemption on or after January 1, 2015
22and prior to February 5, 2020 (the effective date of Public Act
23101-629).
24    (28) Tangible personal property purchased by a
25public-facilities corporation, as described in Section
2611-65-10 of the Illinois Municipal Code, for purposes of

 

 

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1constructing or furnishing a municipal convention hall, but
2only if the legal title to the municipal convention hall is
3transferred to the municipality without any further
4consideration by or on behalf of the municipality at the time
5of the completion of the municipal convention hall or upon the
6retirement or redemption of any bonds or other debt
7instruments issued by the public-facilities corporation in
8connection with the development of the municipal convention
9hall. This exemption includes existing public-facilities
10corporations as provided in Section 11-65-25 of the Illinois
11Municipal Code. This paragraph is exempt from the provisions
12of Section 3-75.
13    (29) Beginning January 1, 2017 and through December 31,
142026, menstrual pads, tampons, and menstrual cups.
15    (30) Tangible personal property transferred to a purchaser
16who is exempt from the tax imposed by this Act by operation of
17federal law. This paragraph is exempt from the provisions of
18Section 3-75.
19    (31) Qualified tangible personal property used in the
20construction or operation of a data center that has been
21granted a certificate of exemption by the Department of
22Commerce and Economic Opportunity, whether that tangible
23personal property is purchased by the owner, operator, or
24tenant of the data center or by a contractor or subcontractor
25of the owner, operator, or tenant. Data centers that would
26have qualified for a certificate of exemption prior to January

 

 

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11, 2020 had Public Act 101-31 been in effect, may apply for and
2obtain an exemption for subsequent purchases of computer
3equipment or enabling software purchased or leased to upgrade,
4supplement, or replace computer equipment or enabling software
5purchased or leased in the original investment that would have
6qualified.
7    The Department of Commerce and Economic Opportunity shall
8grant a certificate of exemption under this item (31) to
9qualified data centers as defined by Section 605-1025 of the
10Department of Commerce and Economic Opportunity Law of the
11Civil Administrative Code of Illinois.
12    For the purposes of this item (31):
13        "Data center" means a building or a series of
14    buildings rehabilitated or constructed to house working
15    servers in one physical location or multiple sites within
16    the State of Illinois.
17        "Qualified tangible personal property" means:
18    electrical systems and equipment; climate control and
19    chilling equipment and systems; mechanical systems and
20    equipment; monitoring and secure systems; emergency
21    generators; hardware; computers; servers; data storage
22    devices; network connectivity equipment; racks; cabinets;
23    telecommunications cabling infrastructure; raised floor
24    systems; peripheral components or systems; software;
25    mechanical, electrical, or plumbing systems; battery
26    systems; cooling systems and towers; temperature control

 

 

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1    systems; other cabling; and other data center
2    infrastructure equipment and systems necessary to operate
3    qualified tangible personal property, including fixtures;
4    and component parts of any of the foregoing, including
5    installation, maintenance, repair, refurbishment, and
6    replacement of qualified tangible personal property to
7    generate, transform, transmit, distribute, or manage
8    electricity necessary to operate qualified tangible
9    personal property; and all other tangible personal
10    property that is essential to the operations of a computer
11    data center. The term "qualified tangible personal
12    property" also includes building materials physically
13    incorporated into in to the qualifying data center. To
14    document the exemption allowed under this Section, the
15    retailer must obtain from the purchaser a copy of the
16    certificate of eligibility issued by the Department of
17    Commerce and Economic Opportunity.
18    This item (31) is exempt from the provisions of Section
193-75.
20    (32) Beginning July 1, 2022, breast pumps, breast pump
21collection and storage supplies, and breast pump kits. This
22item (32) is exempt from the provisions of Section 3-75. As
23used in this item (32):
24        "Breast pump" means an electrically controlled or
25    manually controlled pump device designed or marketed to be
26    used to express milk from a human breast during lactation,

 

 

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1    including the pump device and any battery, AC adapter, or
2    other power supply unit that is used to power the pump
3    device and is packaged and sold with the pump device at the
4    time of sale.
5        "Breast pump collection and storage supplies" means
6    items of tangible personal property designed or marketed
7    to be used in conjunction with a breast pump to collect
8    milk expressed from a human breast and to store collected
9    milk until it is ready for consumption.
10        "Breast pump collection and storage supplies"
11    includes, but is not limited to: breast shields and breast
12    shield connectors; breast pump tubes and tubing adapters;
13    breast pump valves and membranes; backflow protectors and
14    backflow protector adaptors; bottles and bottle caps
15    specific to the operation of the breast pump; and breast
16    milk storage bags.
17        "Breast pump collection and storage supplies" does not
18    include: (1) bottles and bottle caps not specific to the
19    operation of the breast pump; (2) breast pump travel bags
20    and other similar carrying accessories, including ice
21    packs, labels, and other similar products; (3) breast pump
22    cleaning supplies; (4) nursing bras, bra pads, breast
23    shells, and other similar products; and (5) creams,
24    ointments, and other similar products that relieve
25    breastfeeding-related symptoms or conditions of the
26    breasts or nipples, unless sold as part of a breast pump

 

 

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1    kit that is pre-packaged by the breast pump manufacturer
2    or distributor.
3        "Breast pump kit" means a kit that: (1) contains no
4    more than a breast pump, breast pump collection and
5    storage supplies, a rechargeable battery for operating the
6    breast pump, a breastmilk cooler, bottle stands, ice
7    packs, and a breast pump carrying case; and (2) is
8    pre-packaged as a breast pump kit by the breast pump
9    manufacturer or distributor.
10    (33) Tangible personal property sold by or on behalf of
11the State Treasurer pursuant to the Revised Uniform Unclaimed
12Property Act. This item (33) is exempt from the provisions of
13Section 3-75.
14    (34) Beginning on January 1, 2024, tangible personal
15property purchased by an active duty member of the armed
16forces of the United States who presents valid military
17identification and purchases the property using a form of
18payment where the federal government is the payor. The member
19of the armed forces must complete, at the point of sale, a form
20prescribed by the Department of Revenue documenting that the
21transaction is eligible for the exemption under this
22paragraph. Retailers must keep the form as documentation of
23the exemption in their records for a period of not less than 6
24years. "Armed forces of the United States" means the United
25States Army, Navy, Air Force, Marine Corps, or Coast Guard.
26This paragraph is exempt from the provisions of Section 3-75.

 

 

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1    (35) Qualified tangible personal property used in the
2construction or operation of a megaproject for which a
3certificate has been issued by the Department of Revenue as
4described and defined in Division 22 of Article 10 of the
5Property Tax Code, whether that tangible personal property is
6purchased by the owner, operator, or tenant of the megaproject
7or by a contractor or subcontractor of the owner, operator, or
8tenant.
9    For the purposes of this item (35):
10    "Megaproject" has the meaning ascribed to that term in
11Section 10-910 of the Property Tax Code.
12    "Qualified tangible personal property" means: electrical
13systems and equipment; climate control and chilling equipment
14and systems; mechanical systems and equipment; monitoring and
15security systems; emergency generators; hardware; computers;
16servers; data storage devices; network connectivity equipment;
17racks; cabinets; telecommunications cabling infrastructure;
18raised floor systems; peripheral components or systems;
19software; mechanical, electrical, or plumbing systems; battery
20systems; cooling systems and towers; temperature control
21systems; other cabling; and other data center infrastructure
22equipment and systems necessary to operate qualified tangible
23personal property, including fixtures; and component parts of
24any of the foregoing, including installation, maintenance,
25repair, refurbishment, and replacement of qualified tangible
26personal property to generate, transform, transmit,

 

 

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1distribute, or manage electricity necessary to operate
2qualified tangible personal property; and all other tangible
3personal property that is essential to the operations of a
4megaproject. The term "qualified tangible personal property"
5also includes building materials to be incorporated into the
6megaproject. To document the exemption allowed under this
7Section, the retailer, contractor or subcontractor or supplier
8must obtain from the purchaser a copy of the certificate
9issued by the Department of Revenue for the megaproject as
10described and defined in Division 22 of Article 10 of the
11Property Tax Code.
12    This item (35) is exempt from the provisions of Section
133-75.
14(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
15Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1675-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
17Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
18eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
19revised 12-12-23.)
 
20    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
21    Sec. 9. Each serviceman required or authorized to collect
22the tax herein imposed shall pay to the Department the amount
23of such tax (except as otherwise provided) at the time when he
24is required to file his return for the period during which such
25tax was collected, less a discount of 2.1% prior to January 1,

 

 

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11990 and 1.75% on and after January 1, 1990, or $5 per calendar
2year, whichever is greater, which is allowed to reimburse the
3serviceman for expenses incurred in collecting the tax,
4keeping records, preparing and filing returns, remitting the
5tax and supplying data to the Department on request. When
6determining the discount allowed under this Section,
7servicemen shall include the amount of tax that would have
8been due at the 1% rate but for the 0% rate imposed under this
9amendatory Act of the 102nd General Assembly. The discount
10under this Section is not allowed for the 1.25% portion of
11taxes paid on aviation fuel that is subject to the revenue use
12requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
13discount allowed under this Section is allowed only for
14returns that are filed in the manner required by this Act. The
15Department may disallow the discount for servicemen whose
16certificate of registration is revoked at the time the return
17is filed, but only if the Department's decision to revoke the
18certificate of registration has become final. A serviceman
19need not remit that part of any tax collected by him to the
20extent that he is required to pay and does pay the tax imposed
21by the Service Occupation Tax Act with respect to his sale of
22service involving the incidental transfer by him of the same
23property.
24    Except as provided hereinafter in this Section, on or
25before the twentieth day of each calendar month, such
26serviceman shall file a return for the preceding calendar

 

 

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1month in accordance with reasonable Rules and Regulations to
2be promulgated by the Department. Such return shall be filed
3on a form prescribed by the Department and shall contain such
4information as the Department may reasonably require. The
5return shall include the gross receipts which were received
6during the preceding calendar month or quarter on the
7following items upon which tax would have been due but for the
80% rate imposed under this amendatory Act of the 102nd General
9Assembly: (i) food for human consumption that is to be
10consumed off the premises where it is sold (other than
11alcoholic beverages, food consisting of or infused with adult
12use cannabis, soft drinks, and food that has been prepared for
13immediate consumption); and (ii) food prepared for immediate
14consumption and transferred incident to a sale of service
15subject to this Act or the Service Occupation Tax Act by an
16entity licensed under the Hospital Licensing Act, the Nursing
17Home Care Act, the Assisted Living and Shared Housing Act, the
18ID/DD Community Care Act, the MC/DD Act, the Specialized
19Mental Health Rehabilitation Act of 2013, or the Child Care
20Act of 1969, or an entity that holds a permit issued pursuant
21to the Life Care Facilities Act. The return shall also include
22the amount of tax that would have been due on the items listed
23in the previous sentence but for the 0% rate imposed under this
24amendatory Act of the 102nd General Assembly.
25    On and after January 1, 2018, with respect to servicemen
26whose annual gross receipts average $20,000 or more, all

 

 

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1returns required to be filed pursuant to this Act shall be
2filed electronically. Servicemen who demonstrate that they do
3not have access to the Internet or demonstrate hardship in
4filing electronically may petition the Department to waive the
5electronic filing requirement.
6    The Department may require returns to be filed on a
7quarterly basis. If so required, a return for each calendar
8quarter shall be filed on or before the twentieth day of the
9calendar month following the end of such calendar quarter. The
10taxpayer shall also file a return with the Department for each
11of the first 2 two months of each calendar quarter, on or
12before the twentieth day of the following calendar month,
13stating:
14        1. The name of the seller;
15        2. The address of the principal place of business from
16    which he engages in business as a serviceman in this
17    State;
18        3. The total amount of taxable receipts received by
19    him during the preceding calendar month, including
20    receipts from charge and time sales, but less all
21    deductions allowed by law;
22        4. The amount of credit provided in Section 2d of this
23    Act;
24        5. The amount of tax due;
25        5-5. The signature of the taxpayer; and
26        6. Such other reasonable information as the Department

 

 

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1    may require.
2    Each serviceman required or authorized to collect the tax
3imposed by this Act on aviation fuel transferred as an
4incident of a sale of service in this State during the
5preceding calendar month shall, instead of reporting and
6paying tax on aviation fuel as otherwise required by this
7Section, report and pay such tax on a separate aviation fuel
8tax return. The requirements related to the return shall be as
9otherwise provided in this Section. Notwithstanding any other
10provisions of this Act to the contrary, servicemen collecting
11tax on aviation fuel shall file all aviation fuel tax returns
12and shall make all aviation fuel tax payments by electronic
13means in the manner and form required by the Department. For
14purposes of this Section, "aviation fuel" means jet fuel and
15aviation gasoline.
16    If a taxpayer fails to sign a return within 30 days after
17the proper notice and demand for signature by the Department,
18the return shall be considered valid and any amount shown to be
19due on the return shall be deemed assessed.
20    Notwithstanding any other provision of this Act to the
21contrary, servicemen subject to tax on cannabis shall file all
22cannabis tax returns and shall make all cannabis tax payments
23by electronic means in the manner and form required by the
24Department.
25    Beginning October 1, 1993, a taxpayer who has an average
26monthly tax liability of $150,000 or more shall make all

 

 

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1payments required by rules of the Department by electronic
2funds transfer. Beginning October 1, 1994, a taxpayer who has
3an average monthly tax liability of $100,000 or more shall
4make all payments required by rules of the Department by
5electronic funds transfer. Beginning October 1, 1995, a
6taxpayer who has an average monthly tax liability of $50,000
7or more shall make all payments required by rules of the
8Department by electronic funds transfer. Beginning October 1,
92000, a taxpayer who has an annual tax liability of $200,000 or
10more shall make all payments required by rules of the
11Department by electronic funds transfer. The term "annual tax
12liability" shall be the sum of the taxpayer's liabilities
13under this Act, and under all other State and local occupation
14and use tax laws administered by the Department, for the
15immediately preceding calendar year. The term "average monthly
16tax liability" means the sum of the taxpayer's liabilities
17under this Act, and under all other State and local occupation
18and use tax laws administered by the Department, for the
19immediately preceding calendar year divided by 12. Beginning
20on October 1, 2002, a taxpayer who has a tax liability in the
21amount set forth in subsection (b) of Section 2505-210 of the
22Department of Revenue Law shall make all payments required by
23rules of the Department by electronic funds transfer.
24    Before August 1 of each year beginning in 1993, the
25Department shall notify all taxpayers required to make
26payments by electronic funds transfer. All taxpayers required

 

 

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1to make payments by electronic funds transfer shall make those
2payments for a minimum of one year beginning on October 1.
3    Any taxpayer not required to make payments by electronic
4funds transfer may make payments by electronic funds transfer
5with the permission of the Department.
6    All taxpayers required to make payment by electronic funds
7transfer and any taxpayers authorized to voluntarily make
8payments by electronic funds transfer shall make those
9payments in the manner authorized by the Department.
10    The Department shall adopt such rules as are necessary to
11effectuate a program of electronic funds transfer and the
12requirements of this Section.
13    If the serviceman is otherwise required to file a monthly
14return and if the serviceman's average monthly tax liability
15to the Department does not exceed $200, the Department may
16authorize his returns to be filed on a quarter annual basis,
17with the return for January, February and March of a given year
18being due by April 20 of such year; with the return for April,
19May and June of a given year being due by July 20 of such year;
20with the return for July, August and September of a given year
21being due by October 20 of such year, and with the return for
22October, November and December of a given year being due by
23January 20 of the following year.
24    If the serviceman is otherwise required to file a monthly
25or quarterly return and if the serviceman's average monthly
26tax liability to the Department does not exceed $50, the

 

 

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1Department may authorize his returns to be filed on an annual
2basis, with the return for a given year being due by January 20
3of the following year.
4    Such quarter annual and annual returns, as to form and
5substance, shall be subject to the same requirements as
6monthly returns.
7    Notwithstanding any other provision in this Act concerning
8the time within which a serviceman may file his return, in the
9case of any serviceman who ceases to engage in a kind of
10business which makes him responsible for filing returns under
11this Act, such serviceman shall file a final return under this
12Act with the Department not more than 1 month after
13discontinuing such business.
14    Where a serviceman collects the tax with respect to the
15selling price of property which he sells and the purchaser
16thereafter returns such property and the serviceman refunds
17the selling price thereof to the purchaser, such serviceman
18shall also refund, to the purchaser, the tax so collected from
19the purchaser. When filing his return for the period in which
20he refunds such tax to the purchaser, the serviceman may
21deduct the amount of the tax so refunded by him to the
22purchaser from any other Service Use Tax, Service Occupation
23Tax, retailers' occupation tax or use tax which such
24serviceman may be required to pay or remit to the Department,
25as shown by such return, provided that the amount of the tax to
26be deducted shall previously have been remitted to the

 

 

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1Department by such serviceman. If the serviceman shall not
2previously have remitted the amount of such tax to the
3Department, he shall be entitled to no deduction hereunder
4upon refunding such tax to the purchaser.
5    Any serviceman filing a return hereunder shall also
6include the total tax upon the selling price of tangible
7personal property purchased for use by him as an incident to a
8sale of service, and such serviceman shall remit the amount of
9such tax to the Department when filing such return.
10    If experience indicates such action to be practicable, the
11Department may prescribe and furnish a combination or joint
12return which will enable servicemen, who are required to file
13returns hereunder and also under the Service Occupation Tax
14Act, to furnish all the return information required by both
15Acts on the one form.
16    Where the serviceman has more than one business registered
17with the Department under separate registration hereunder,
18such serviceman shall not file each return that is due as a
19single return covering all such registered businesses, but
20shall file separate returns for each such registered business.
21    Notwithstanding any provision of law to the contrary,
22beginning on the first day of the first month after the
23Arlington Megaproject is established under Division 22 of
24Article 10 of the Property Tax Code, all taxes collected under
25this Act from persons located within the Arlington Megaproject
26shall be deposited into the Arlington Megaproject

 

 

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1Infrastructure Fund.
2    Beginning January 1, 1990, each month the Department shall
3pay into the State and Local Tax Reform Fund, a special fund in
4the State Treasury, the net revenue realized for the preceding
5month from the 1% tax imposed under this Act.
6    Beginning January 1, 1990, each month the Department shall
7pay into the State and Local Sales Tax Reform Fund 20% of the
8net revenue realized for the preceding month from the 6.25%
9general rate on transfers of tangible personal property, other
10than (i) tangible personal property which is purchased outside
11Illinois at retail from a retailer and which is titled or
12registered by an agency of this State's government and (ii)
13aviation fuel sold on or after December 1, 2019. This
14exception for aviation fuel only applies for so long as the
15revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1647133 are binding on the State.
17    For aviation fuel sold on or after December 1, 2019, each
18month the Department shall pay into the State Aviation Program
19Fund 20% of the net revenue realized for the preceding month
20from the 6.25% general rate on the selling price of aviation
21fuel, less an amount estimated by the Department to be
22required for refunds of the 20% portion of the tax on aviation
23fuel under this Act, which amount shall be deposited into the
24Aviation Fuel Sales Tax Refund Fund. The Department shall only
25pay moneys into the State Aviation Program Fund and the
26Aviation Fuel Sales Tax Refund Fund under this Act for so long

 

 

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1as the revenue use requirements of 49 U.S.C. 47107(b) and 49
2U.S.C. 47133 are binding on the State.
3    Beginning August 1, 2000, each month the Department shall
4pay into the State and Local Sales Tax Reform Fund 100% of the
5net revenue realized for the preceding month from the 1.25%
6rate on the selling price of motor fuel and gasohol.
7    Beginning October 1, 2009, each month the Department shall
8pay into the Capital Projects Fund an amount that is equal to
9an amount estimated by the Department to represent 80% of the
10net revenue realized for the preceding month from the sale of
11candy, grooming and hygiene products, and soft drinks that had
12been taxed at a rate of 1% prior to September 1, 2009 but that
13are now taxed at 6.25%.
14    Beginning July 1, 2013, each month the Department shall
15pay into the Underground Storage Tank Fund from the proceeds
16collected under this Act, the Use Tax Act, the Service
17Occupation Tax Act, and the Retailers' Occupation Tax Act an
18amount equal to the average monthly deficit in the Underground
19Storage Tank Fund during the prior year, as certified annually
20by the Illinois Environmental Protection Agency, but the total
21payment into the Underground Storage Tank Fund under this Act,
22the Use Tax Act, the Service Occupation Tax Act, and the
23Retailers' Occupation Tax Act shall not exceed $18,000,000 in
24any State fiscal year. As used in this paragraph, the "average
25monthly deficit" shall be equal to the difference between the
26average monthly claims for payment by the fund and the average

 

 

HB4655- 98 -LRB103 36446 HLH 67754 b

1monthly revenues deposited into the fund, excluding payments
2made pursuant to this paragraph.
3    Beginning July 1, 2015, of the remainder of the moneys
4received by the Department under the Use Tax Act, this Act, the
5Service Occupation Tax Act, and the Retailers' Occupation Tax
6Act, each month the Department shall deposit $500,000 into the
7State Crime Laboratory Fund.
8    Of the remainder of the moneys received by the Department
9pursuant to this Act, (a) 1.75% thereof shall be paid into the
10Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
11and after July 1, 1989, 3.8% thereof shall be paid into the
12Build Illinois Fund; provided, however, that if in any fiscal
13year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
14may be, of the moneys received by the Department and required
15to be paid into the Build Illinois Fund pursuant to Section 3
16of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
17Act, Section 9 of the Service Use Tax Act, and Section 9 of the
18Service Occupation Tax Act, such Acts being hereinafter called
19the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
20may be, of moneys being hereinafter called the "Tax Act
21Amount", and (2) the amount transferred to the Build Illinois
22Fund from the State and Local Sales Tax Reform Fund shall be
23less than the Annual Specified Amount (as defined in Section 3
24of the Retailers' Occupation Tax Act), an amount equal to the
25difference shall be immediately paid into the Build Illinois
26Fund from other moneys received by the Department pursuant to

 

 

HB4655- 99 -LRB103 36446 HLH 67754 b

1the Tax Acts; and further provided, that if on the last
2business day of any month the sum of (1) the Tax Act Amount
3required to be deposited into the Build Illinois Bond Account
4in the Build Illinois Fund during such month and (2) the amount
5transferred during such month to the Build Illinois Fund from
6the State and Local Sales Tax Reform Fund shall have been less
7than 1/12 of the Annual Specified Amount, an amount equal to
8the difference shall be immediately paid into the Build
9Illinois Fund from other moneys received by the Department
10pursuant to the Tax Acts; and, further provided, that in no
11event shall the payments required under the preceding proviso
12result in aggregate payments into the Build Illinois Fund
13pursuant to this clause (b) for any fiscal year in excess of
14the greater of (i) the Tax Act Amount or (ii) the Annual
15Specified Amount for such fiscal year; and, further provided,
16that the amounts payable into the Build Illinois Fund under
17this clause (b) shall be payable only until such time as the
18aggregate amount on deposit under each trust indenture
19securing Bonds issued and outstanding pursuant to the Build
20Illinois Bond Act is sufficient, taking into account any
21future investment income, to fully provide, in accordance with
22such indenture, for the defeasance of or the payment of the
23principal of, premium, if any, and interest on the Bonds
24secured by such indenture and on any Bonds expected to be
25issued thereafter and all fees and costs payable with respect
26thereto, all as certified by the Director of the Bureau of the

 

 

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1Budget (now Governor's Office of Management and Budget). If on
2the last business day of any month in which Bonds are
3outstanding pursuant to the Build Illinois Bond Act, the
4aggregate of the moneys deposited in the Build Illinois Bond
5Account in the Build Illinois Fund in such month shall be less
6than the amount required to be transferred in such month from
7the Build Illinois Bond Account to the Build Illinois Bond
8Retirement and Interest Fund pursuant to Section 13 of the
9Build Illinois Bond Act, an amount equal to such deficiency
10shall be immediately paid from other moneys received by the
11Department pursuant to the Tax Acts to the Build Illinois
12Fund; provided, however, that any amounts paid to the Build
13Illinois Fund in any fiscal year pursuant to this sentence
14shall be deemed to constitute payments pursuant to clause (b)
15of the preceding sentence and shall reduce the amount
16otherwise payable for such fiscal year pursuant to clause (b)
17of the preceding sentence. The moneys received by the
18Department pursuant to this Act and required to be deposited
19into the Build Illinois Fund are subject to the pledge, claim
20and charge set forth in Section 12 of the Build Illinois Bond
21Act.
22    Subject to payment of amounts into the Build Illinois Fund
23as provided in the preceding paragraph or in any amendment
24thereto hereafter enacted, the following specified monthly
25installment of the amount requested in the certificate of the
26Chairman of the Metropolitan Pier and Exposition Authority

 

 

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1provided under Section 8.25f of the State Finance Act, but not
2in excess of the sums designated as "Total Deposit", shall be
3deposited in the aggregate from collections under Section 9 of
4the Use Tax Act, Section 9 of the Service Use Tax Act, Section
59 of the Service Occupation Tax Act, and Section 3 of the
6Retailers' Occupation Tax Act into the McCormick Place
7Expansion Project Fund in the specified fiscal years.
 
8Fiscal YearTotal Deposit
91993         $0
101994 53,000,000
111995 58,000,000
121996 61,000,000
131997 64,000,000
141998 68,000,000
151999 71,000,000
162000 75,000,000
172001 80,000,000
182002 93,000,000
192003 99,000,000
202004103,000,000
212005108,000,000
222006113,000,000
232007119,000,000
242008126,000,000
252009132,000,000

 

 

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12010139,000,000
22011146,000,000
32012153,000,000
42013161,000,000
52014170,000,000
62015179,000,000
72016189,000,000
82017199,000,000
92018210,000,000
102019221,000,000
112020233,000,000
122021300,000,000
132022300,000,000
142023300,000,000
152024 300,000,000
162025 300,000,000
172026 300,000,000
182027 375,000,000
192028 375,000,000
202029 375,000,000
212030 375,000,000
222031 375,000,000
232032 375,000,000
242033 375,000,000
252034375,000,000
262035375,000,000

 

 

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12036450,000,000
2and
3each fiscal year
4thereafter that bonds
5are outstanding under
6Section 13.2 of the
7Metropolitan Pier and
8Exposition Authority Act,
9but not after fiscal year 2060.
10    Beginning July 20, 1993 and in each month of each fiscal
11year thereafter, one-eighth of the amount requested in the
12certificate of the Chairman of the Metropolitan Pier and
13Exposition Authority for that fiscal year, less the amount
14deposited into the McCormick Place Expansion Project Fund by
15the State Treasurer in the respective month under subsection
16(g) of Section 13 of the Metropolitan Pier and Exposition
17Authority Act, plus cumulative deficiencies in the deposits
18required under this Section for previous months and years,
19shall be deposited into the McCormick Place Expansion Project
20Fund, until the full amount requested for the fiscal year, but
21not in excess of the amount specified above as "Total
22Deposit", has been deposited.
23    Subject to payment of amounts into the Capital Projects
24Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
25and the McCormick Place Expansion Project Fund pursuant to the
26preceding paragraphs or in any amendments thereto hereafter

 

 

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1enacted, for aviation fuel sold on or after December 1, 2019,
2the Department shall each month deposit into the Aviation Fuel
3Sales Tax Refund Fund an amount estimated by the Department to
4be required for refunds of the 80% portion of the tax on
5aviation fuel under this Act. The Department shall only
6deposit moneys into the Aviation Fuel Sales Tax Refund Fund
7under this paragraph for so long as the revenue use
8requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
9binding on the State.
10    Subject to payment of amounts into the Build Illinois Fund
11and the McCormick Place Expansion Project Fund pursuant to the
12preceding paragraphs or in any amendments thereto hereafter
13enacted, beginning July 1, 1993 and ending on September 30,
142013, the Department shall each month pay into the Illinois
15Tax Increment Fund 0.27% of 80% of the net revenue realized for
16the preceding month from the 6.25% general rate on the selling
17price of tangible personal property.
18    Subject to payment of amounts into the Build Illinois
19Fund, the McCormick Place Expansion Project Fund, the Illinois
20Tax Increment Fund, pursuant to the preceding paragraphs or in
21any amendments to this Section hereafter enacted, beginning on
22the first day of the first calendar month to occur on or after
23August 26, 2014 (the effective date of Public Act 98-1098),
24each month, from the collections made under Section 9 of the
25Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of
26the Service Occupation Tax Act, and Section 3 of the

 

 

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1Retailers' Occupation Tax Act, the Department shall pay into
2the Tax Compliance and Administration Fund, to be used,
3subject to appropriation, to fund additional auditors and
4compliance personnel at the Department of Revenue, an amount
5equal to 1/12 of 5% of 80% of the cash receipts collected
6during the preceding fiscal year by the Audit Bureau of the
7Department under the Use Tax Act, the Service Use Tax Act, the
8Service Occupation Tax Act, the Retailers' Occupation Tax Act,
9and associated local occupation and use taxes administered by
10the Department.
11    Subject to payments of amounts into the Build Illinois
12Fund, the McCormick Place Expansion Project Fund, the Illinois
13Tax Increment Fund, and the Tax Compliance and Administration
14Fund as provided in this Section, beginning on July 1, 2018 the
15Department shall pay each month into the Downstate Public
16Transportation Fund the moneys required to be so paid under
17Section 2-3 of the Downstate Public Transportation Act.
18    Subject to successful execution and delivery of a
19public-private agreement between the public agency and private
20entity and completion of the civic build, beginning on July 1,
212023, of the remainder of the moneys received by the
22Department under the Use Tax Act, the Service Use Tax Act, the
23Service Occupation Tax Act, and this Act, the Department shall
24deposit the following specified deposits in the aggregate from
25collections under the Use Tax Act, the Service Use Tax Act, the
26Service Occupation Tax Act, and the Retailers' Occupation Tax

 

 

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1Act, as required under Section 8.25g of the State Finance Act
2for distribution consistent with the Public-Private
3Partnership for Civic and Transit Infrastructure Project Act.
4The moneys received by the Department pursuant to this Act and
5required to be deposited into the Civic and Transit
6Infrastructure Fund are subject to the pledge, claim, and
7charge set forth in Section 25-55 of the Public-Private
8Partnership for Civic and Transit Infrastructure Project Act.
9As used in this paragraph, "civic build", "private entity",
10"public-private agreement", and "public agency" have the
11meanings provided in Section 25-10 of the Public-Private
12Partnership for Civic and Transit Infrastructure Project Act.
13        Fiscal Year............................Total Deposit
14        2024....................................$200,000,000
15        2025....................................$206,000,000
16        2026....................................$212,200,000
17        2027....................................$218,500,000
18        2028....................................$225,100,000
19        2029....................................$288,700,000
20        2030....................................$298,900,000
21        2031....................................$309,300,000
22        2032....................................$320,100,000
23        2033....................................$331,200,000
24        2034....................................$341,200,000
25        2035....................................$351,400,000
26        2036....................................$361,900,000

 

 

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1        2037....................................$372,800,000
2        2038....................................$384,000,000
3        2039....................................$395,500,000
4        2040....................................$407,400,000
5        2041....................................$419,600,000
6        2042....................................$432,200,000
7        2043....................................$445,100,000
8    Beginning July 1, 2021 and until July 1, 2022, subject to
9the payment of amounts into the State and Local Sales Tax
10Reform Fund, the Build Illinois Fund, the McCormick Place
11Expansion Project Fund, the Energy Infrastructure Fund, and
12the Tax Compliance and Administration Fund as provided in this
13Section, the Department shall pay each month into the Road
14Fund the amount estimated to represent 16% of the net revenue
15realized from the taxes imposed on motor fuel and gasohol.
16Beginning July 1, 2022 and until July 1, 2023, subject to the
17payment of amounts into the State and Local Sales Tax Reform
18Fund, the Build Illinois Fund, the McCormick Place Expansion
19Project Fund, the Illinois Tax Increment Fund, and the Tax
20Compliance and Administration Fund as provided in this
21Section, the Department shall pay each month into the Road
22Fund the amount estimated to represent 32% of the net revenue
23realized from the taxes imposed on motor fuel and gasohol.
24Beginning July 1, 2023 and until July 1, 2024, subject to the
25payment of amounts into the State and Local Sales Tax Reform
26Fund, the Build Illinois Fund, the McCormick Place Expansion

 

 

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1Project Fund, the Illinois Tax Increment Fund, and the Tax
2Compliance and Administration Fund as provided in this
3Section, the Department shall pay each month into the Road
4Fund the amount estimated to represent 48% of the net revenue
5realized from the taxes imposed on motor fuel and gasohol.
6Beginning July 1, 2024 and until July 1, 2025, subject to the
7payment of amounts into the State and Local Sales Tax Reform
8Fund, the Build Illinois Fund, the McCormick Place Expansion
9Project Fund, the Illinois Tax Increment Fund, and the Tax
10Compliance and Administration Fund as provided in this
11Section, the Department shall pay each month into the Road
12Fund the amount estimated to represent 64% of the net revenue
13realized from the taxes imposed on motor fuel and gasohol.
14Beginning on July 1, 2025, subject to the payment of amounts
15into the State and Local Sales Tax Reform Fund, the Build
16Illinois Fund, the McCormick Place Expansion Project Fund, the
17Illinois Tax Increment Fund, and the Tax Compliance and
18Administration Fund as provided in this Section, the
19Department shall pay each month into the Road Fund the amount
20estimated to represent 80% of the net revenue realized from
21the taxes imposed on motor fuel and gasohol. As used in this
22paragraph "motor fuel" has the meaning given to that term in
23Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
24meaning given to that term in Section 3-40 of the Use Tax Act.
25    Of the remainder of the moneys received by the Department
26pursuant to this Act, 75% thereof shall be paid into the

 

 

HB4655- 109 -LRB103 36446 HLH 67754 b

1General Revenue Fund of the State Treasury and 25% shall be
2reserved in a special account and used only for the transfer to
3the Common School Fund as part of the monthly transfer from the
4General Revenue Fund in accordance with Section 8a of the
5State Finance Act.
6    As soon as possible after the first day of each month, upon
7certification of the Department of Revenue, the Comptroller
8shall order transferred and the Treasurer shall transfer from
9the General Revenue Fund to the Motor Fuel Tax Fund an amount
10equal to 1.7% of 80% of the net revenue realized under this Act
11for the second preceding month. Beginning April 1, 2000, this
12transfer is no longer required and shall not be made.
13    Net revenue realized for a month shall be the revenue
14collected by the State pursuant to this Act, less the amount
15paid out during that month as refunds to taxpayers for
16overpayment of liability.
17(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)
 
18    Section 915. The Service Occupation Tax Act is amended by
19changing Sections 3-5 and 9 as follows:
 
20    (35 ILCS 115/3-5)
21    Sec. 3-5. Exemptions. The following tangible personal
22property is exempt from the tax imposed by this Act:
23    (1) Personal property sold by a corporation, society,
24association, foundation, institution, or organization, other

 

 

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1than a limited liability company, that is organized and
2operated as a not-for-profit service enterprise for the
3benefit of persons 65 years of age or older if the personal
4property was not purchased by the enterprise for the purpose
5of resale by the enterprise.
6    (2) Personal property purchased by a not-for-profit
7Illinois county fair association for use in conducting,
8operating, or promoting the county fair.
9    (3) Personal property purchased by any not-for-profit arts
10or cultural organization that establishes, by proof required
11by the Department by rule, that it has received an exemption
12under Section 501(c)(3) of the Internal Revenue Code and that
13is organized and operated primarily for the presentation or
14support of arts or cultural programming, activities, or
15services. These organizations include, but are not limited to,
16music and dramatic arts organizations such as symphony
17orchestras and theatrical groups, arts and cultural service
18organizations, local arts councils, visual arts organizations,
19and media arts organizations. On and after July 1, 2001 (the
20effective date of Public Act 92-35), however, an entity
21otherwise eligible for this exemption shall not make tax-free
22purchases unless it has an active identification number issued
23by the Department.
24    (4) Legal tender, currency, medallions, or gold or silver
25coinage issued by the State of Illinois, the government of the
26United States of America, or the government of any foreign

 

 

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1country, and bullion.
2    (5) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new
5and used, and including that manufactured on special order or
6purchased for lease, certified by the purchaser to be used
7primarily for graphic arts production. Equipment includes
8chemicals or chemicals acting as catalysts but only if the
9chemicals or chemicals acting as catalysts effect a direct and
10immediate change upon a graphic arts product. Beginning on
11July 1, 2017, graphic arts machinery and equipment is included
12in the manufacturing and assembling machinery and equipment
13exemption under Section 2 of this Act.
14    (6) Personal property sold by a teacher-sponsored student
15organization affiliated with an elementary or secondary school
16located in Illinois.
17    (7) Farm machinery and equipment, both new and used,
18including that manufactured on special order, certified by the
19purchaser to be used primarily for production agriculture or
20State or federal agricultural programs, including individual
21replacement parts for the machinery and equipment, including
22machinery and equipment purchased for lease, and including
23implements of husbandry defined in Section 1-130 of the
24Illinois Vehicle Code, farm machinery and agricultural
25chemical and fertilizer spreaders, and nurse wagons required
26to be registered under Section 3-809 of the Illinois Vehicle

 

 

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1Code, but excluding other motor vehicles required to be
2registered under the Illinois Vehicle Code. Horticultural
3polyhouses or hoop houses used for propagating, growing, or
4overwintering plants shall be considered farm machinery and
5equipment under this item (7). Agricultural chemical tender
6tanks and dry boxes shall include units sold separately from a
7motor vehicle required to be licensed and units sold mounted
8on a motor vehicle required to be licensed if the selling price
9of the tender is separately stated.
10    Farm machinery and equipment shall include precision
11farming equipment that is installed or purchased to be
12installed on farm machinery and equipment, including, but not
13limited to, tractors, harvesters, sprayers, planters, seeders,
14or spreaders. Precision farming equipment includes, but is not
15limited to, soil testing sensors, computers, monitors,
16software, global positioning and mapping systems, and other
17such equipment.
18    Farm machinery and equipment also includes computers,
19sensors, software, and related equipment used primarily in the
20computer-assisted operation of production agriculture
21facilities, equipment, and activities such as, but not limited
22to, the collection, monitoring, and correlation of animal and
23crop data for the purpose of formulating animal diets and
24agricultural chemicals.
25    Beginning on January 1, 2024, farm machinery and equipment
26also includes electrical power generation equipment used

 

 

HB4655- 113 -LRB103 36446 HLH 67754 b

1primarily for production agriculture.
2    This item (7) is exempt from the provisions of Section
33-55.
4    (8) Until June 30, 2013, fuel and petroleum products sold
5to or used by an air common carrier, certified by the carrier
6to be used for consumption, shipment, or storage in the
7conduct of its business as an air common carrier, for a flight
8destined for or returning from a location or locations outside
9the United States without regard to previous or subsequent
10domestic stopovers.
11    Beginning July 1, 2013, fuel and petroleum products sold
12to or used by an air carrier, certified by the carrier to be
13used for consumption, shipment, or storage in the conduct of
14its business as an air common carrier, for a flight that (i) is
15engaged in foreign trade or is engaged in trade between the
16United States and any of its possessions and (ii) transports
17at least one individual or package for hire from the city of
18origination to the city of final destination on the same
19aircraft, without regard to a change in the flight number of
20that aircraft.
21    (9) Proceeds of mandatory service charges separately
22stated on customers' bills for the purchase and consumption of
23food and beverages, to the extent that the proceeds of the
24service charge are in fact turned over as tips or as a
25substitute for tips to the employees who participate directly
26in preparing, serving, hosting or cleaning up the food or

 

 

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1beverage function with respect to which the service charge is
2imposed.
3    (10) Until July 1, 2003, oil field exploration, drilling,
4and production equipment, including (i) rigs and parts of
5rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
6pipe and tubular goods, including casing and drill strings,
7(iii) pumps and pump-jack units, (iv) storage tanks and flow
8lines, (v) any individual replacement part for oil field
9exploration, drilling, and production equipment, and (vi)
10machinery and equipment purchased for lease; but excluding
11motor vehicles required to be registered under the Illinois
12Vehicle Code.
13    (11) Photoprocessing machinery and equipment, including
14repair and replacement parts, both new and used, including
15that manufactured on special order, certified by the purchaser
16to be used primarily for photoprocessing, and including
17photoprocessing machinery and equipment purchased for lease.
18    (12) Until July 1, 2028, coal and aggregate exploration,
19mining, off-highway hauling, processing, maintenance, and
20reclamation equipment, including replacement parts and
21equipment, and including equipment purchased for lease, but
22excluding motor vehicles required to be registered under the
23Illinois Vehicle Code. The changes made to this Section by
24Public Act 97-767 apply on and after July 1, 2003, but no claim
25for credit or refund is allowed on or after August 16, 2013
26(the effective date of Public Act 98-456) for such taxes paid

 

 

HB4655- 115 -LRB103 36446 HLH 67754 b

1during the period beginning July 1, 2003 and ending on August
216, 2013 (the effective date of Public Act 98-456).
3    (13) Beginning January 1, 1992 and through June 30, 2016,
4food for human consumption that is to be consumed off the
5premises where it is sold (other than alcoholic beverages,
6soft drinks and food that has been prepared for immediate
7consumption) and prescription and non-prescription medicines,
8drugs, medical appliances, and insulin, urine testing
9materials, syringes, and needles used by diabetics, for human
10use, when purchased for use by a person receiving medical
11assistance under Article V of the Illinois Public Aid Code who
12resides in a licensed long-term care facility, as defined in
13the Nursing Home Care Act, or in a licensed facility as defined
14in the ID/DD Community Care Act, the MC/DD Act, or the
15Specialized Mental Health Rehabilitation Act of 2013.
16    (14) Semen used for artificial insemination of livestock
17for direct agricultural production.
18    (15) Horses, or interests in horses, registered with and
19meeting the requirements of any of the Arabian Horse Club
20Registry of America, Appaloosa Horse Club, American Quarter
21Horse Association, United States Trotting Association, or
22Jockey Club, as appropriate, used for purposes of breeding or
23racing for prizes. This item (15) is exempt from the
24provisions of Section 3-55, and the exemption provided for
25under this item (15) applies for all periods beginning May 30,
261995, but no claim for credit or refund is allowed on or after

 

 

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1January 1, 2008 (the effective date of Public Act 95-88) for
2such taxes paid during the period beginning May 30, 2000 and
3ending on January 1, 2008 (the effective date of Public Act
495-88).
5    (16) Computers and communications equipment utilized for
6any hospital purpose and equipment used in the diagnosis,
7analysis, or treatment of hospital patients sold to a lessor
8who leases the equipment, under a lease of one year or longer
9executed or in effect at the time of the purchase, to a
10hospital that has been issued an active tax exemption
11identification number by the Department under Section 1g of
12the Retailers' Occupation Tax Act.
13    (17) Personal property sold to a lessor who leases the
14property, under a lease of one year or longer executed or in
15effect at the time of the purchase, to a governmental body that
16has been issued an active tax exemption identification number
17by the Department under Section 1g of the Retailers'
18Occupation Tax Act.
19    (18) Beginning with taxable years ending on or after
20December 31, 1995 and ending with taxable years ending on or
21before December 31, 2004, personal property that is donated
22for disaster relief to be used in a State or federally declared
23disaster area in Illinois or bordering Illinois by a
24manufacturer or retailer that is registered in this State to a
25corporation, society, association, foundation, or institution
26that has been issued a sales tax exemption identification

 

 

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1number by the Department that assists victims of the disaster
2who reside within the declared disaster area.
3    (19) Beginning with taxable years ending on or after
4December 31, 1995 and ending with taxable years ending on or
5before December 31, 2004, personal property that is used in
6the performance of infrastructure repairs in this State,
7including, but not limited to, municipal roads and streets,
8access roads, bridges, sidewalks, waste disposal systems,
9water and sewer line extensions, water distribution and
10purification facilities, storm water drainage and retention
11facilities, and sewage treatment facilities, resulting from a
12State or federally declared disaster in Illinois or bordering
13Illinois when such repairs are initiated on facilities located
14in the declared disaster area within 6 months after the
15disaster.
16    (20) Beginning July 1, 1999, game or game birds sold at a
17"game breeding and hunting preserve area" as that term is used
18in the Wildlife Code. This paragraph is exempt from the
19provisions of Section 3-55.
20    (21) A motor vehicle, as that term is defined in Section
211-146 of the Illinois Vehicle Code, that is donated to a
22corporation, limited liability company, society, association,
23foundation, or institution that is determined by the
24Department to be organized and operated exclusively for
25educational purposes. For purposes of this exemption, "a
26corporation, limited liability company, society, association,

 

 

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1foundation, or institution organized and operated exclusively
2for educational purposes" means all tax-supported public
3schools, private schools that offer systematic instruction in
4useful branches of learning by methods common to public
5schools and that compare favorably in their scope and
6intensity with the course of study presented in tax-supported
7schools, and vocational or technical schools or institutes
8organized and operated exclusively to provide a course of
9study of not less than 6 weeks duration and designed to prepare
10individuals to follow a trade or to pursue a manual,
11technical, mechanical, industrial, business, or commercial
12occupation.
13    (22) Beginning January 1, 2000, personal property,
14including food, purchased through fundraising events for the
15benefit of a public or private elementary or secondary school,
16a group of those schools, or one or more school districts if
17the events are sponsored by an entity recognized by the school
18district that consists primarily of volunteers and includes
19parents and teachers of the school children. This paragraph
20does not apply to fundraising events (i) for the benefit of
21private home instruction or (ii) for which the fundraising
22entity purchases the personal property sold at the events from
23another individual or entity that sold the property for the
24purpose of resale by the fundraising entity and that profits
25from the sale to the fundraising entity. This paragraph is
26exempt from the provisions of Section 3-55.

 

 

HB4655- 119 -LRB103 36446 HLH 67754 b

1    (23) Beginning January 1, 2000 and through December 31,
22001, new or used automatic vending machines that prepare and
3serve hot food and beverages, including coffee, soup, and
4other items, and replacement parts for these machines.
5Beginning January 1, 2002 and through June 30, 2003, machines
6and parts for machines used in commercial, coin-operated
7amusement and vending business if a use or occupation tax is
8paid on the gross receipts derived from the use of the
9commercial, coin-operated amusement and vending machines. This
10paragraph is exempt from the provisions of Section 3-55.
11    (24) Beginning on August 2, 2001 (the effective date of
12Public Act 92-227), computers and communications equipment
13utilized for any hospital purpose and equipment used in the
14diagnosis, analysis, or treatment of hospital patients sold to
15a lessor who leases the equipment, under a lease of one year or
16longer executed or in effect at the time of the purchase, to a
17hospital that has been issued an active tax exemption
18identification number by the Department under Section 1g of
19the Retailers' Occupation Tax Act. This paragraph is exempt
20from the provisions of Section 3-55.
21    (25) Beginning on August 2, 2001 (the effective date of
22Public Act 92-227), personal property sold to a lessor who
23leases the property, under a lease of one year or longer
24executed or in effect at the time of the purchase, to a
25governmental body that has been issued an active tax exemption
26identification number by the Department under Section 1g of

 

 

HB4655- 120 -LRB103 36446 HLH 67754 b

1the Retailers' Occupation Tax Act. This paragraph is exempt
2from the provisions of Section 3-55.
3    (26) Beginning on January 1, 2002 and through June 30,
42016, tangible personal property purchased from an Illinois
5retailer by a taxpayer engaged in centralized purchasing
6activities in Illinois who will, upon receipt of the property
7in Illinois, temporarily store the property in Illinois (i)
8for the purpose of subsequently transporting it outside this
9State for use or consumption thereafter solely outside this
10State or (ii) for the purpose of being processed, fabricated,
11or manufactured into, attached to, or incorporated into other
12tangible personal property to be transported outside this
13State and thereafter used or consumed solely outside this
14State. The Director of Revenue shall, pursuant to rules
15adopted in accordance with the Illinois Administrative
16Procedure Act, issue a permit to any taxpayer in good standing
17with the Department who is eligible for the exemption under
18this paragraph (26). The permit issued under this paragraph
19(26) shall authorize the holder, to the extent and in the
20manner specified in the rules adopted under this Act, to
21purchase tangible personal property from a retailer exempt
22from the taxes imposed by this Act. Taxpayers shall maintain
23all necessary books and records to substantiate the use and
24consumption of all such tangible personal property outside of
25the State of Illinois.
26    (27) Beginning January 1, 2008, tangible personal property

 

 

HB4655- 121 -LRB103 36446 HLH 67754 b

1used in the construction or maintenance of a community water
2supply, as defined under Section 3.145 of the Environmental
3Protection Act, that is operated by a not-for-profit
4corporation that holds a valid water supply permit issued
5under Title IV of the Environmental Protection Act. This
6paragraph is exempt from the provisions of Section 3-55.
7    (28) Tangible personal property sold to a
8public-facilities corporation, as described in Section
911-65-10 of the Illinois Municipal Code, for purposes of
10constructing or furnishing a municipal convention hall, but
11only if the legal title to the municipal convention hall is
12transferred to the municipality without any further
13consideration by or on behalf of the municipality at the time
14of the completion of the municipal convention hall or upon the
15retirement or redemption of any bonds or other debt
16instruments issued by the public-facilities corporation in
17connection with the development of the municipal convention
18hall. This exemption includes existing public-facilities
19corporations as provided in Section 11-65-25 of the Illinois
20Municipal Code. This paragraph is exempt from the provisions
21of Section 3-55.
22    (29) Beginning January 1, 2010 and continuing through
23December 31, 2029, materials, parts, equipment, components,
24and furnishings incorporated into or upon an aircraft as part
25of the modification, refurbishment, completion, replacement,
26repair, or maintenance of the aircraft. This exemption

 

 

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1includes consumable supplies used in the modification,
2refurbishment, completion, replacement, repair, and
3maintenance of aircraft. However, until January 1, 2024, this
4exemption excludes any materials, parts, equipment,
5components, and consumable supplies used in the modification,
6replacement, repair, and maintenance of aircraft engines or
7power plants, whether such engines or power plants are
8installed or uninstalled upon any such aircraft. "Consumable
9supplies" include, but are not limited to, adhesive, tape,
10sandpaper, general purpose lubricants, cleaning solution,
11latex gloves, and protective films.
12    Beginning January 1, 2010 and continuing through December
1331, 2023, this exemption applies only to the transfer of
14qualifying tangible personal property incident to the
15modification, refurbishment, completion, replacement, repair,
16or maintenance of an aircraft by persons who (i) hold an Air
17Agency Certificate and are empowered to operate an approved
18repair station by the Federal Aviation Administration, (ii)
19have a Class IV Rating, and (iii) conduct operations in
20accordance with Part 145 of the Federal Aviation Regulations.
21The exemption does not include aircraft operated by a
22commercial air carrier providing scheduled passenger air
23service pursuant to authority issued under Part 121 or Part
24129 of the Federal Aviation Regulations. From January 1, 2024
25through December 31, 2029, this exemption applies only to the
26use of qualifying tangible personal property by: (A) persons

 

 

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1who modify, refurbish, complete, repair, replace, or maintain
2aircraft and who (i) hold an Air Agency Certificate and are
3empowered to operate an approved repair station by the Federal
4Aviation Administration, (ii) have a Class IV Rating, and
5(iii) conduct operations in accordance with Part 145 of the
6Federal Aviation Regulations; and (B) persons who engage in
7the modification, replacement, repair, and maintenance of
8aircraft engines or power plants without regard to whether or
9not those persons meet the qualifications of item (A).
10    The changes made to this paragraph (29) by Public Act
1198-534 are declarative of existing law. It is the intent of the
12General Assembly that the exemption under this paragraph (29)
13applies continuously from January 1, 2010 through December 31,
142024; however, no claim for credit or refund is allowed for
15taxes paid as a result of the disallowance of this exemption on
16or after January 1, 2015 and prior to February 5, 2020 (the
17effective date of Public Act 101-629).
18    (30) Beginning January 1, 2017 and through December 31,
192026, menstrual pads, tampons, and menstrual cups.
20    (31) Tangible personal property transferred to a purchaser
21who is exempt from tax by operation of federal law. This
22paragraph is exempt from the provisions of Section 3-55.
23    (32) Qualified tangible personal property used in the
24construction or operation of a data center that has been
25granted a certificate of exemption by the Department of
26Commerce and Economic Opportunity, whether that tangible

 

 

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1personal property is purchased by the owner, operator, or
2tenant of the data center or by a contractor or subcontractor
3of the owner, operator, or tenant. Data centers that would
4have qualified for a certificate of exemption prior to January
51, 2020 had Public Act 101-31 been in effect, may apply for and
6obtain an exemption for subsequent purchases of computer
7equipment or enabling software purchased or leased to upgrade,
8supplement, or replace computer equipment or enabling software
9purchased or leased in the original investment that would have
10qualified.
11    The Department of Commerce and Economic Opportunity shall
12grant a certificate of exemption under this item (32) to
13qualified data centers as defined by Section 605-1025 of the
14Department of Commerce and Economic Opportunity Law of the
15Civil Administrative Code of Illinois.
16    For the purposes of this item (32):
17        "Data center" means a building or a series of
18    buildings rehabilitated or constructed to house working
19    servers in one physical location or multiple sites within
20    the State of Illinois.
21        "Qualified tangible personal property" means:
22    electrical systems and equipment; climate control and
23    chilling equipment and systems; mechanical systems and
24    equipment; monitoring and secure systems; emergency
25    generators; hardware; computers; servers; data storage
26    devices; network connectivity equipment; racks; cabinets;

 

 

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1    telecommunications cabling infrastructure; raised floor
2    systems; peripheral components or systems; software;
3    mechanical, electrical, or plumbing systems; battery
4    systems; cooling systems and towers; temperature control
5    systems; other cabling; and other data center
6    infrastructure equipment and systems necessary to operate
7    qualified tangible personal property, including fixtures;
8    and component parts of any of the foregoing, including
9    installation, maintenance, repair, refurbishment, and
10    replacement of qualified tangible personal property to
11    generate, transform, transmit, distribute, or manage
12    electricity necessary to operate qualified tangible
13    personal property; and all other tangible personal
14    property that is essential to the operations of a computer
15    data center. The term "qualified tangible personal
16    property" also includes building materials physically
17    incorporated into in to the qualifying data center. To
18    document the exemption allowed under this Section, the
19    retailer must obtain from the purchaser a copy of the
20    certificate of eligibility issued by the Department of
21    Commerce and Economic Opportunity.
22    This item (32) is exempt from the provisions of Section
233-55.
24    (33) Beginning July 1, 2022, breast pumps, breast pump
25collection and storage supplies, and breast pump kits. This
26item (33) is exempt from the provisions of Section 3-55. As

 

 

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1used in this item (33):
2        "Breast pump" means an electrically controlled or
3    manually controlled pump device designed or marketed to be
4    used to express milk from a human breast during lactation,
5    including the pump device and any battery, AC adapter, or
6    other power supply unit that is used to power the pump
7    device and is packaged and sold with the pump device at the
8    time of sale.
9        "Breast pump collection and storage supplies" means
10    items of tangible personal property designed or marketed
11    to be used in conjunction with a breast pump to collect
12    milk expressed from a human breast and to store collected
13    milk until it is ready for consumption.
14        "Breast pump collection and storage supplies"
15    includes, but is not limited to: breast shields and breast
16    shield connectors; breast pump tubes and tubing adapters;
17    breast pump valves and membranes; backflow protectors and
18    backflow protector adaptors; bottles and bottle caps
19    specific to the operation of the breast pump; and breast
20    milk storage bags.
21        "Breast pump collection and storage supplies" does not
22    include: (1) bottles and bottle caps not specific to the
23    operation of the breast pump; (2) breast pump travel bags
24    and other similar carrying accessories, including ice
25    packs, labels, and other similar products; (3) breast pump
26    cleaning supplies; (4) nursing bras, bra pads, breast

 

 

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1    shells, and other similar products; and (5) creams,
2    ointments, and other similar products that relieve
3    breastfeeding-related symptoms or conditions of the
4    breasts or nipples, unless sold as part of a breast pump
5    kit that is pre-packaged by the breast pump manufacturer
6    or distributor.
7        "Breast pump kit" means a kit that: (1) contains no
8    more than a breast pump, breast pump collection and
9    storage supplies, a rechargeable battery for operating the
10    breast pump, a breastmilk cooler, bottle stands, ice
11    packs, and a breast pump carrying case; and (2) is
12    pre-packaged as a breast pump kit by the breast pump
13    manufacturer or distributor.
14    (34) Tangible personal property sold by or on behalf of
15the State Treasurer pursuant to the Revised Uniform Unclaimed
16Property Act. This item (34) is exempt from the provisions of
17Section 3-55.
18    (35) Beginning on January 1, 2024, tangible personal
19property purchased by an active duty member of the armed
20forces of the United States who presents valid military
21identification and purchases the property using a form of
22payment where the federal government is the payor. The member
23of the armed forces must complete, at the point of sale, a form
24prescribed by the Department of Revenue documenting that the
25transaction is eligible for the exemption under this
26paragraph. Retailers must keep the form as documentation of

 

 

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1the exemption in their records for a period of not less than 6
2years. "Armed forces of the United States" means the United
3States Army, Navy, Air Force, Marine Corps, or Coast Guard.
4This paragraph is exempt from the provisions of Section 3-55.
5    (36) Qualified tangible personal property used in the
6construction or operation of a megaproject for which a
7certificate has been issued by the Department of Revenue as
8described and defined in Division 22 of Article 10 of the
9Property Tax Code, whether that tangible personal property is
10purchased by the owner, operator, or tenant of the megaproject
11or by a contractor or subcontractor of the owner, operator, or
12tenant.
13    For the purposes of this item (36):
14    "Megaproject" has the meaning ascribed to that term in
15Section 10-910 of the Property Tax Code.
16    "Qualified tangible personal property" means: electrical
17systems and equipment; climate control and chilling equipment
18and systems; mechanical systems and equipment; monitoring and
19security systems; emergency generators; hardware; computers;
20servers; data storage devices; network connectivity equipment;
21racks; cabinets; telecommunications cabling infrastructure;
22raised floor systems; peripheral components or systems;
23software; mechanical, electrical, or plumbing systems; battery
24systems; cooling systems and towers; temperature control
25systems; other cabling; and other data center infrastructure
26equipment and systems necessary to operate qualified tangible

 

 

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1personal property, including fixtures; and component parts of
2any of the foregoing, including installation, maintenance,
3repair, refurbishment, and replacement of qualified tangible
4personal property to generate, transform, transmit,
5distribute, or manage electricity necessary to operate
6qualified tangible personal property; and all other tangible
7personal property that is essential to the operations of a
8megaproject. The term "qualified tangible personal property"
9also includes building materials to be incorporated into the
10megaproject. To document the exemption allowed under this
11Section, the retailer, contractor or subcontractor or supplier
12must obtain from the purchaser a copy of the certificate
13issued by the Department of Revenue for the megaproject as
14described and defined in Division 22 of Article 10 of the
15Property Tax Code.
16    This item (36) is exempt from the provisions of Section
173-55.
18(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
19Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2075-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
21Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
22eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
23revised 12-12-23.)
 
24    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
25    Sec. 9. Each serviceman required or authorized to collect

 

 

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1the tax herein imposed shall pay to the Department the amount
2of such tax at the time when he is required to file his return
3for the period during which such tax was collectible, less a
4discount of 2.1% prior to January 1, 1990, and 1.75% on and
5after January 1, 1990, or $5 per calendar year, whichever is
6greater, which is allowed to reimburse the serviceman for
7expenses incurred in collecting the tax, keeping records,
8preparing and filing returns, remitting the tax, and supplying
9data to the Department on request. When determining the
10discount allowed under this Section, servicemen shall include
11the amount of tax that would have been due at the 1% rate but
12for the 0% rate imposed under Public Act 102-700 this
13amendatory Act of the 102nd General Assembly. The discount
14under this Section is not allowed for the 1.25% portion of
15taxes paid on aviation fuel that is subject to the revenue use
16requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
17discount allowed under this Section is allowed only for
18returns that are filed in the manner required by this Act. The
19Department may disallow the discount for servicemen whose
20certificate of registration is revoked at the time the return
21is filed, but only if the Department's decision to revoke the
22certificate of registration has become final.
23    Where such tangible personal property is sold under a
24conditional sales contract, or under any other form of sale
25wherein the payment of the principal sum, or a part thereof, is
26extended beyond the close of the period for which the return is

 

 

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1filed, the serviceman, in collecting the tax may collect, for
2each tax return period, only the tax applicable to the part of
3the selling price actually received during such tax return
4period.
5    Except as provided hereinafter in this Section, on or
6before the twentieth day of each calendar month, such
7serviceman shall file a return for the preceding calendar
8month in accordance with reasonable rules and regulations to
9be promulgated by the Department of Revenue. Such return shall
10be filed on a form prescribed by the Department and shall
11contain such information as the Department may reasonably
12require. The return shall include the gross receipts which
13were received during the preceding calendar month or quarter
14on the following items upon which tax would have been due but
15for the 0% rate imposed under Public Act 102-700 this
16amendatory Act of the 102nd General Assembly: (i) food for
17human consumption that is to be consumed off the premises
18where it is sold (other than alcoholic beverages, food
19consisting of or infused with adult use cannabis, soft drinks,
20and food that has been prepared for immediate consumption);
21and (ii) food prepared for immediate consumption and
22transferred incident to a sale of service subject to this Act
23or the Service Use Tax Act by an entity licensed under the
24Hospital Licensing Act, the Nursing Home Care Act, the
25Assisted Living and Shared Housing Act, the ID/DD Community
26Care Act, the MC/DD Act, the Specialized Mental Health

 

 

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1Rehabilitation Act of 2013, or the Child Care Act of 1969, or
2an entity that holds a permit issued pursuant to the Life Care
3Facilities Act. The return shall also include the amount of
4tax that would have been due on the items listed in the
5previous sentence but for the 0% rate imposed under Public Act
6102-700 this amendatory Act of the 102nd General Assembly.
7    On and after January 1, 2018, with respect to servicemen
8whose annual gross receipts average $20,000 or more, all
9returns required to be filed pursuant to this Act shall be
10filed electronically. Servicemen who demonstrate that they do
11not have access to the Internet or demonstrate hardship in
12filing electronically may petition the Department to waive the
13electronic filing requirement.
14    The Department may require returns to be filed on a
15quarterly basis. If so required, a return for each calendar
16quarter shall be filed on or before the twentieth day of the
17calendar month following the end of such calendar quarter. The
18taxpayer shall also file a return with the Department for each
19of the first 2 two months of each calendar quarter, on or
20before the twentieth day of the following calendar month,
21stating:
22        1. The name of the seller;
23        2. The address of the principal place of business from
24    which he engages in business as a serviceman in this
25    State;
26        3. The total amount of taxable receipts received by

 

 

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1    him during the preceding calendar month, including
2    receipts from charge and time sales, but less all
3    deductions allowed by law;
4        4. The amount of credit provided in Section 2d of this
5    Act;
6        5. The amount of tax due;
7        5-5. The signature of the taxpayer; and
8        6. Such other reasonable information as the Department
9    may require.
10    Each serviceman required or authorized to collect the tax
11herein imposed on aviation fuel acquired as an incident to the
12purchase of a service in this State during the preceding
13calendar month shall, instead of reporting and paying tax as
14otherwise required by this Section, report and pay such tax on
15a separate aviation fuel tax return. The requirements related
16to the return shall be as otherwise provided in this Section.
17Notwithstanding any other provisions of this Act to the
18contrary, servicemen transferring aviation fuel incident to
19sales of service shall file all aviation fuel tax returns and
20shall make all aviation fuel tax payments by electronic means
21in the manner and form required by the Department. For
22purposes of this Section, "aviation fuel" means jet fuel and
23aviation gasoline.
24    If a taxpayer fails to sign a return within 30 days after
25the proper notice and demand for signature by the Department,
26the return shall be considered valid and any amount shown to be

 

 

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1due on the return shall be deemed assessed.
2    Notwithstanding any other provision of this Act to the
3contrary, servicemen subject to tax on cannabis shall file all
4cannabis tax returns and shall make all cannabis tax payments
5by electronic means in the manner and form required by the
6Department.
7    Prior to October 1, 2003, and on and after September 1,
82004 a serviceman may accept a Manufacturer's Purchase Credit
9certification from a purchaser in satisfaction of Service Use
10Tax as provided in Section 3-70 of the Service Use Tax Act if
11the purchaser provides the appropriate documentation as
12required by Section 3-70 of the Service Use Tax Act. A
13Manufacturer's Purchase Credit certification, accepted prior
14to October 1, 2003 or on or after September 1, 2004 by a
15serviceman as provided in Section 3-70 of the Service Use Tax
16Act, may be used by that serviceman to satisfy Service
17Occupation Tax liability in the amount claimed in the
18certification, not to exceed 6.25% of the receipts subject to
19tax from a qualifying purchase. A Manufacturer's Purchase
20Credit reported on any original or amended return filed under
21this Act after October 20, 2003 for reporting periods prior to
22September 1, 2004 shall be disallowed. Manufacturer's Purchase
23Credit reported on annual returns due on or after January 1,
242005 will be disallowed for periods prior to September 1,
252004. No Manufacturer's Purchase Credit may be used after
26September 30, 2003 through August 31, 2004 to satisfy any tax

 

 

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1liability imposed under this Act, including any audit
2liability.
3    Beginning on July 1, 2023 and through December 31, 2032, a
4serviceman may accept a Sustainable Aviation Fuel Purchase
5Credit certification from an air common carrier-purchaser in
6satisfaction of Service Use Tax as provided in Section 3-72 of
7the Service Use Tax Act if the purchaser provides the
8appropriate documentation as required by Section 3-72 of the
9Service Use Tax Act. A Sustainable Aviation Fuel Purchase
10Credit certification accepted by a serviceman in accordance
11with this paragraph may be used by that serviceman to satisfy
12service occupation tax liability (but not in satisfaction of
13penalty or interest) in the amount claimed in the
14certification, not to exceed 6.25% of the receipts subject to
15tax from a sale of aviation fuel. In addition, for a sale of
16aviation fuel to qualify to earn the Sustainable Aviation Fuel
17Purchase Credit, servicemen must retain in their books and
18records a certification from the producer of the aviation fuel
19that the aviation fuel sold by the serviceman and for which a
20sustainable aviation fuel purchase credit was earned meets the
21definition of sustainable aviation fuel under Section 3-72 of
22the Service Use Tax Act. The documentation must include detail
23sufficient for the Department to determine the number of
24gallons of sustainable aviation fuel sold.
25    If the serviceman's average monthly tax liability to the
26Department does not exceed $200, the Department may authorize

 

 

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1his returns to be filed on a quarter annual basis, with the
2return for January, February, and March of a given year being
3due by April 20 of such year; with the return for April, May,
4and June of a given year being due by July 20 of such year;
5with the return for July, August, and September of a given year
6being due by October 20 of such year, and with the return for
7October, November, and December of a given year being due by
8January 20 of the following year.
9    If the serviceman's average monthly tax liability to the
10Department does not exceed $50, the Department may authorize
11his returns to be filed on an annual basis, with the return for
12a given year being due by January 20 of the following year.
13    Such quarter annual and annual returns, as to form and
14substance, shall be subject to the same requirements as
15monthly returns.
16    Notwithstanding any other provision in this Act concerning
17the time within which a serviceman may file his return, in the
18case of any serviceman who ceases to engage in a kind of
19business which makes him responsible for filing returns under
20this Act, such serviceman shall file a final return under this
21Act with the Department not more than one 1 month after
22discontinuing such business.
23    Beginning October 1, 1993, a taxpayer who has an average
24monthly tax liability of $150,000 or more shall make all
25payments required by rules of the Department by electronic
26funds transfer. Beginning October 1, 1994, a taxpayer who has

 

 

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1an average monthly tax liability of $100,000 or more shall
2make all payments required by rules of the Department by
3electronic funds transfer. Beginning October 1, 1995, a
4taxpayer who has an average monthly tax liability of $50,000
5or more shall make all payments required by rules of the
6Department by electronic funds transfer. Beginning October 1,
72000, a taxpayer who has an annual tax liability of $200,000 or
8more shall make all payments required by rules of the
9Department by electronic funds transfer. The term "annual tax
10liability" shall be the sum of the taxpayer's liabilities
11under this Act, and under all other State and local occupation
12and use tax laws administered by the Department, for the
13immediately preceding calendar year. The term "average monthly
14tax liability" means the sum of the taxpayer's liabilities
15under this Act, and under all other State and local occupation
16and use tax laws administered by the Department, for the
17immediately preceding calendar year divided by 12. Beginning
18on October 1, 2002, a taxpayer who has a tax liability in the
19amount set forth in subsection (b) of Section 2505-210 of the
20Department of Revenue Law shall make all payments required by
21rules of the Department by electronic funds transfer.
22    Before August 1 of each year beginning in 1993, the
23Department shall notify all taxpayers required to make
24payments by electronic funds transfer. All taxpayers required
25to make payments by electronic funds transfer shall make those
26payments for a minimum of one year beginning on October 1.

 

 

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1    Any taxpayer not required to make payments by electronic
2funds transfer may make payments by electronic funds transfer
3with the permission of the Department.
4    All taxpayers required to make payment by electronic funds
5transfer and any taxpayers authorized to voluntarily make
6payments by electronic funds transfer shall make those
7payments in the manner authorized by the Department.
8    The Department shall adopt such rules as are necessary to
9effectuate a program of electronic funds transfer and the
10requirements of this Section.
11    Where a serviceman collects the tax with respect to the
12selling price of tangible personal property which he sells and
13the purchaser thereafter returns such tangible personal
14property and the serviceman refunds the selling price thereof
15to the purchaser, such serviceman shall also refund, to the
16purchaser, the tax so collected from the purchaser. When
17filing his return for the period in which he refunds such tax
18to the purchaser, the serviceman may deduct the amount of the
19tax so refunded by him to the purchaser from any other Service
20Occupation Tax, Service Use Tax, Retailers' Occupation Tax, or
21Use Tax which such serviceman may be required to pay or remit
22to the Department, as shown by such return, provided that the
23amount of the tax to be deducted shall previously have been
24remitted to the Department by such serviceman. If the
25serviceman shall not previously have remitted the amount of
26such tax to the Department, he shall be entitled to no

 

 

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1deduction hereunder upon refunding such tax to the purchaser.
2    If experience indicates such action to be practicable, the
3Department may prescribe and furnish a combination or joint
4return which will enable servicemen, who are required to file
5returns hereunder and also under the Retailers' Occupation Tax
6Act, the Use Tax Act, or the Service Use Tax Act, to furnish
7all the return information required by all said Acts on the one
8form.
9    Where the serviceman has more than one business registered
10with the Department under separate registrations hereunder,
11such serviceman shall file separate returns for each
12registered business.
13    Notwithstanding any provision of law to the contrary,
14beginning on the first day of the first month after the
15Arlington Megaproject is established under Division 22 of
16Article 10 of the Property Tax Code, all taxes collected under
17this Act from persons located within the Arlington Megaproject
18shall be deposited into the Arlington Megaproject
19Infrastructure Fund.
20    Beginning January 1, 1990, each month the Department shall
21pay into the Local Government Tax Fund the revenue realized
22for the preceding month from the 1% tax imposed under this Act.
23    Beginning January 1, 1990, each month the Department shall
24pay into the County and Mass Transit District Fund 4% of the
25revenue realized for the preceding month from the 6.25%
26general rate on sales of tangible personal property other than

 

 

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1aviation fuel sold on or after December 1, 2019. This
2exception for aviation fuel only applies for so long as the
3revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
447133 are binding on the State.
5    Beginning August 1, 2000, each month the Department shall
6pay into the County and Mass Transit District Fund 20% of the
7net revenue realized for the preceding month from the 1.25%
8rate on the selling price of motor fuel and gasohol.
9    Beginning January 1, 1990, each month the Department shall
10pay into the Local Government Tax Fund 16% of the revenue
11realized for the preceding month from the 6.25% general rate
12on transfers of tangible personal property other than aviation
13fuel sold on or after December 1, 2019. This exception for
14aviation fuel only applies for so long as the revenue use
15requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
16binding on the State.
17    For aviation fuel sold on or after December 1, 2019, each
18month the Department shall pay into the State Aviation Program
19Fund 20% of the net revenue realized for the preceding month
20from the 6.25% general rate on the selling price of aviation
21fuel, less an amount estimated by the Department to be
22required for refunds of the 20% portion of the tax on aviation
23fuel under this Act, which amount shall be deposited into the
24Aviation Fuel Sales Tax Refund Fund. The Department shall only
25pay moneys into the State Aviation Program Fund and the
26Aviation Fuel Sales Tax Refund Fund under this Act for so long

 

 

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1as the revenue use requirements of 49 U.S.C. 47107(b) and 49
2U.S.C. 47133 are binding on the State.
3    Beginning August 1, 2000, each month the Department shall
4pay into the Local Government Tax Fund 80% of the net revenue
5realized for the preceding month from the 1.25% rate on the
6selling price of motor fuel and gasohol.
7    Beginning October 1, 2009, each month the Department shall
8pay into the Capital Projects Fund an amount that is equal to
9an amount estimated by the Department to represent 80% of the
10net revenue realized for the preceding month from the sale of
11candy, grooming and hygiene products, and soft drinks that had
12been taxed at a rate of 1% prior to September 1, 2009 but that
13are now taxed at 6.25%.
14    Beginning July 1, 2013, each month the Department shall
15pay into the Underground Storage Tank Fund from the proceeds
16collected under this Act, the Use Tax Act, the Service Use Tax
17Act, and the Retailers' Occupation Tax Act an amount equal to
18the average monthly deficit in the Underground Storage Tank
19Fund during the prior year, as certified annually by the
20Illinois Environmental Protection Agency, but the total
21payment into the Underground Storage Tank Fund under this Act,
22the Use Tax Act, the Service Use Tax Act, and the Retailers'
23Occupation Tax Act shall not exceed $18,000,000 in any State
24fiscal year. As used in this paragraph, the "average monthly
25deficit" shall be equal to the difference between the average
26monthly claims for payment by the fund and the average monthly

 

 

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1revenues deposited into the fund, excluding payments made
2pursuant to this paragraph.
3    Beginning July 1, 2015, of the remainder of the moneys
4received by the Department under the Use Tax Act, the Service
5Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
6each month the Department shall deposit $500,000 into the
7State Crime Laboratory Fund.
8    Of the remainder of the moneys received by the Department
9pursuant to this Act, (a) 1.75% thereof shall be paid into the
10Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
11and after July 1, 1989, 3.8% thereof shall be paid into the
12Build Illinois Fund; provided, however, that if in any fiscal
13year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
14may be, of the moneys received by the Department and required
15to be paid into the Build Illinois Fund pursuant to Section 3
16of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
17Act, Section 9 of the Service Use Tax Act, and Section 9 of the
18Service Occupation Tax Act, such Acts being hereinafter called
19the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
20may be, of moneys being hereinafter called the "Tax Act
21Amount", and (2) the amount transferred to the Build Illinois
22Fund from the State and Local Sales Tax Reform Fund shall be
23less than the Annual Specified Amount (as defined in Section 3
24of the Retailers' Occupation Tax Act), an amount equal to the
25difference shall be immediately paid into the Build Illinois
26Fund from other moneys received by the Department pursuant to

 

 

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1the Tax Acts; and further provided, that if on the last
2business day of any month the sum of (1) the Tax Act Amount
3required to be deposited into the Build Illinois Account in
4the Build Illinois Fund during such month and (2) the amount
5transferred during such month to the Build Illinois Fund from
6the State and Local Sales Tax Reform Fund shall have been less
7than 1/12 of the Annual Specified Amount, an amount equal to
8the difference shall be immediately paid into the Build
9Illinois Fund from other moneys received by the Department
10pursuant to the Tax Acts; and, further provided, that in no
11event shall the payments required under the preceding proviso
12result in aggregate payments into the Build Illinois Fund
13pursuant to this clause (b) for any fiscal year in excess of
14the greater of (i) the Tax Act Amount or (ii) the Annual
15Specified Amount for such fiscal year; and, further provided,
16that the amounts payable into the Build Illinois Fund under
17this clause (b) shall be payable only until such time as the
18aggregate amount on deposit under each trust indenture
19securing Bonds issued and outstanding pursuant to the Build
20Illinois Bond Act is sufficient, taking into account any
21future investment income, to fully provide, in accordance with
22such indenture, for the defeasance of or the payment of the
23principal of, premium, if any, and interest on the Bonds
24secured by such indenture and on any Bonds expected to be
25issued thereafter and all fees and costs payable with respect
26thereto, all as certified by the Director of the Bureau of the

 

 

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1Budget (now Governor's Office of Management and Budget). If on
2the last business day of any month in which Bonds are
3outstanding pursuant to the Build Illinois Bond Act, the
4aggregate of the moneys deposited in the Build Illinois Bond
5Account in the Build Illinois Fund in such month shall be less
6than the amount required to be transferred in such month from
7the Build Illinois Bond Account to the Build Illinois Bond
8Retirement and Interest Fund pursuant to Section 13 of the
9Build Illinois Bond Act, an amount equal to such deficiency
10shall be immediately paid from other moneys received by the
11Department pursuant to the Tax Acts to the Build Illinois
12Fund; provided, however, that any amounts paid to the Build
13Illinois Fund in any fiscal year pursuant to this sentence
14shall be deemed to constitute payments pursuant to clause (b)
15of the preceding sentence and shall reduce the amount
16otherwise payable for such fiscal year pursuant to clause (b)
17of the preceding sentence. The moneys received by the
18Department pursuant to this Act and required to be deposited
19into the Build Illinois Fund are subject to the pledge, claim
20and charge set forth in Section 12 of the Build Illinois Bond
21Act.
22    Subject to payment of amounts into the Build Illinois Fund
23as provided in the preceding paragraph or in any amendment
24thereto hereafter enacted, the following specified monthly
25installment of the amount requested in the certificate of the
26Chairman of the Metropolitan Pier and Exposition Authority

 

 

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1provided under Section 8.25f of the State Finance Act, but not
2in excess of the sums designated as "Total Deposit", shall be
3deposited in the aggregate from collections under Section 9 of
4the Use Tax Act, Section 9 of the Service Use Tax Act, Section
59 of the Service Occupation Tax Act, and Section 3 of the
6Retailers' Occupation Tax Act into the McCormick Place
7Expansion Project Fund in the specified fiscal years.
 
8Fiscal YearTotal Deposit
91993         $0
101994 53,000,000
111995 58,000,000
121996 61,000,000
131997 64,000,000
141998 68,000,000
151999 71,000,000
162000 75,000,000
172001 80,000,000
182002 93,000,000
192003 99,000,000
202004103,000,000
212005108,000,000
222006113,000,000
232007119,000,000
242008126,000,000
252009132,000,000

 

 

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12010139,000,000
22011146,000,000
32012153,000,000
42013161,000,000
52014170,000,000
62015179,000,000
72016189,000,000
82017199,000,000
92018210,000,000
102019221,000,000
112020233,000,000
122021300,000,000
132022300,000,000
142023300,000,000
152024 300,000,000
162025 300,000,000
172026 300,000,000
182027 375,000,000
192028 375,000,000
202029 375,000,000
212030 375,000,000
222031 375,000,000
232032 375,000,000
242033 375,000,000
252034375,000,000
262035375,000,000

 

 

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12036450,000,000
2and
3each fiscal year
4thereafter that bonds
5are outstanding under
6Section 13.2 of the
7Metropolitan Pier and
8Exposition Authority Act,
9but not after fiscal year 2060.
10    Beginning July 20, 1993 and in each month of each fiscal
11year thereafter, one-eighth of the amount requested in the
12certificate of the Chairman of the Metropolitan Pier and
13Exposition Authority for that fiscal year, less the amount
14deposited into the McCormick Place Expansion Project Fund by
15the State Treasurer in the respective month under subsection
16(g) of Section 13 of the Metropolitan Pier and Exposition
17Authority Act, plus cumulative deficiencies in the deposits
18required under this Section for previous months and years,
19shall be deposited into the McCormick Place Expansion Project
20Fund, until the full amount requested for the fiscal year, but
21not in excess of the amount specified above as "Total
22Deposit", has been deposited.
23    Subject to payment of amounts into the Capital Projects
24Fund, the Build Illinois Fund, and the McCormick Place
25Expansion Project Fund pursuant to the preceding paragraphs or
26in any amendments thereto hereafter enacted, for aviation fuel

 

 

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1sold on or after December 1, 2019, the Department shall each
2month deposit into the Aviation Fuel Sales Tax Refund Fund an
3amount estimated by the Department to be required for refunds
4of the 80% portion of the tax on aviation fuel under this Act.
5The Department shall only deposit moneys into the Aviation
6Fuel Sales Tax Refund Fund under this paragraph for so long as
7the revenue use requirements of 49 U.S.C. 47107(b) and 49
8U.S.C. 47133 are binding on the State.
9    Subject to payment of amounts into the Build Illinois Fund
10and the McCormick Place Expansion Project Fund pursuant to the
11preceding paragraphs or in any amendments thereto hereafter
12enacted, beginning July 1, 1993 and ending on September 30,
132013, the Department shall each month pay into the Illinois
14Tax Increment Fund 0.27% of 80% of the net revenue realized for
15the preceding month from the 6.25% general rate on the selling
16price of tangible personal property.
17    Subject to payment of amounts into the Build Illinois
18Fund, the McCormick Place Expansion Project Fund, and the
19Illinois Tax Increment Fund pursuant to the preceding
20paragraphs or in any amendments to this Section hereafter
21enacted, beginning on the first day of the first calendar
22month to occur on or after August 26, 2014 (the effective date
23of Public Act 98-1098), each month, from the collections made
24under Section 9 of the Use Tax Act, Section 9 of the Service
25Use Tax Act, Section 9 of the Service Occupation Tax Act, and
26Section 3 of the Retailers' Occupation Tax Act, the Department

 

 

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1shall pay into the Tax Compliance and Administration Fund, to
2be used, subject to appropriation, to fund additional auditors
3and compliance personnel at the Department of Revenue, an
4amount equal to 1/12 of 5% of 80% of the cash receipts
5collected during the preceding fiscal year by the Audit Bureau
6of the Department under the Use Tax Act, the Service Use Tax
7Act, the Service Occupation Tax Act, the Retailers' Occupation
8Tax Act, and associated local occupation and use taxes
9administered by the Department.
10    Subject to payments of amounts into the Build Illinois
11Fund, the McCormick Place Expansion Project Fund, the Illinois
12Tax Increment Fund, and the Tax Compliance and Administration
13Fund as provided in this Section, beginning on July 1, 2018 the
14Department shall pay each month into the Downstate Public
15Transportation Fund the moneys required to be so paid under
16Section 2-3 of the Downstate Public Transportation Act.
17    Subject to successful execution and delivery of a
18public-private agreement between the public agency and private
19entity and completion of the civic build, beginning on July 1,
202023, of the remainder of the moneys received by the
21Department under the Use Tax Act, the Service Use Tax Act, the
22Service Occupation Tax Act, and this Act, the Department shall
23deposit the following specified deposits in the aggregate from
24collections under the Use Tax Act, the Service Use Tax Act, the
25Service Occupation Tax Act, and the Retailers' Occupation Tax
26Act, as required under Section 8.25g of the State Finance Act

 

 

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1for distribution consistent with the Public-Private
2Partnership for Civic and Transit Infrastructure Project Act.
3The moneys received by the Department pursuant to this Act and
4required to be deposited into the Civic and Transit
5Infrastructure Fund are subject to the pledge, claim and
6charge set forth in Section 25-55 of the Public-Private
7Partnership for Civic and Transit Infrastructure Project Act.
8As used in this paragraph, "civic build", "private entity",
9"public-private agreement", and "public agency" have the
10meanings provided in Section 25-10 of the Public-Private
11Partnership for Civic and Transit Infrastructure Project Act.
12        Fiscal Year............................Total Deposit
13        2024....................................$200,000,000
14        2025....................................$206,000,000
15        2026....................................$212,200,000
16        2027....................................$218,500,000
17        2028....................................$225,100,000
18        2029....................................$288,700,000
19        2030....................................$298,900,000
20        2031....................................$309,300,000
21        2032....................................$320,100,000
22        2033....................................$331,200,000
23        2034....................................$341,200,000
24        2035....................................$351,400,000
25        2036....................................$361,900,000
26        2037....................................$372,800,000

 

 

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1        2038....................................$384,000,000
2        2039....................................$395,500,000
3        2040....................................$407,400,000
4        2041....................................$419,600,000
5        2042....................................$432,200,000
6        2043....................................$445,100,000
7    Beginning July 1, 2021 and until July 1, 2022, subject to
8the payment of amounts into the County and Mass Transit
9District Fund, the Local Government Tax Fund, the Build
10Illinois Fund, the McCormick Place Expansion Project Fund, the
11Illinois Tax Increment Fund, and the Tax Compliance and
12Administration Fund as provided in this Section, the
13Department shall pay each month into the Road Fund the amount
14estimated to represent 16% of the net revenue realized from
15the taxes imposed on motor fuel and gasohol. Beginning July 1,
162022 and until July 1, 2023, subject to the payment of amounts
17into the County and Mass Transit District Fund, the Local
18Government Tax Fund, the Build Illinois Fund, the McCormick
19Place Expansion Project Fund, the Illinois Tax Increment Fund,
20and the Tax Compliance and Administration Fund as provided in
21this Section, the Department shall pay each month into the
22Road Fund the amount estimated to represent 32% of the net
23revenue realized from the taxes imposed on motor fuel and
24gasohol. Beginning July 1, 2023 and until July 1, 2024,
25subject to the payment of amounts into the County and Mass
26Transit District Fund, the Local Government Tax Fund, the

 

 

HB4655- 152 -LRB103 36446 HLH 67754 b

1Build Illinois Fund, the McCormick Place Expansion Project
2Fund, the Illinois Tax Increment Fund, and the Tax Compliance
3and Administration Fund as provided in this Section, the
4Department shall pay each month into the Road Fund the amount
5estimated to represent 48% of the net revenue realized from
6the taxes imposed on motor fuel and gasohol. Beginning July 1,
72024 and until July 1, 2025, subject to the payment of amounts
8into the County and Mass Transit District Fund, the Local
9Government Tax Fund, the Build Illinois Fund, the McCormick
10Place Expansion Project Fund, the Illinois Tax Increment Fund,
11and the Tax Compliance and Administration Fund as provided in
12this Section, the Department shall pay each month into the
13Road Fund the amount estimated to represent 64% of the net
14revenue realized from the taxes imposed on motor fuel and
15gasohol. Beginning on July 1, 2025, subject to the payment of
16amounts into the County and Mass Transit District Fund, the
17Local Government Tax Fund, the Build Illinois Fund, the
18McCormick Place Expansion Project Fund, the Illinois Tax
19Increment Fund, and the Tax Compliance and Administration Fund
20as provided in this Section, the Department shall pay each
21month into the Road Fund the amount estimated to represent 80%
22of the net revenue realized from the taxes imposed on motor
23fuel and gasohol. As used in this paragraph "motor fuel" has
24the meaning given to that term in Section 1.1 of the Motor Fuel
25Tax Law, and "gasohol" has the meaning given to that term in
26Section 3-40 of the Use Tax Act.

 

 

HB4655- 153 -LRB103 36446 HLH 67754 b

1    Of the remainder of the moneys received by the Department
2pursuant to this Act, 75% shall be paid into the General
3Revenue Fund of the State treasury Treasury and 25% shall be
4reserved in a special account and used only for the transfer to
5the Common School Fund as part of the monthly transfer from the
6General Revenue Fund in accordance with Section 8a of the
7State Finance Act.
8    The Department may, upon separate written notice to a
9taxpayer, require the taxpayer to prepare and file with the
10Department on a form prescribed by the Department within not
11less than 60 days after receipt of the notice an annual
12information return for the tax year specified in the notice.
13Such annual return to the Department shall include a statement
14of gross receipts as shown by the taxpayer's last federal
15Federal income tax return. If the total receipts of the
16business as reported in the federal Federal income tax return
17do not agree with the gross receipts reported to the
18Department of Revenue for the same period, the taxpayer shall
19attach to his annual return a schedule showing a
20reconciliation of the 2 amounts and the reasons for the
21difference. The taxpayer's annual return to the Department
22shall also disclose the cost of goods sold by the taxpayer
23during the year covered by such return, opening and closing
24inventories of such goods for such year, cost of goods used
25from stock or taken from stock and given away by the taxpayer
26during such year, pay roll information of the taxpayer's

 

 

HB4655- 154 -LRB103 36446 HLH 67754 b

1business during such year and any additional reasonable
2information which the Department deems would be helpful in
3determining the accuracy of the monthly, quarterly or annual
4returns filed by such taxpayer as hereinbefore provided for in
5this Section.
6    If the annual information return required by this Section
7is not filed when and as required, the taxpayer shall be liable
8as follows:
9        (i) Until January 1, 1994, the taxpayer shall be
10    liable for a penalty equal to 1/6 of 1% of the tax due from
11    such taxpayer under this Act during the period to be
12    covered by the annual return for each month or fraction of
13    a month until such return is filed as required, the
14    penalty to be assessed and collected in the same manner as
15    any other penalty provided for in this Act.
16        (ii) On and after January 1, 1994, the taxpayer shall
17    be liable for a penalty as described in Section 3-4 of the
18    Uniform Penalty and Interest Act.
19    The chief executive officer, proprietor, owner, or highest
20ranking manager shall sign the annual return to certify the
21accuracy of the information contained therein. Any person who
22willfully signs the annual return containing false or
23inaccurate information shall be guilty of perjury and punished
24accordingly. The annual return form prescribed by the
25Department shall include a warning that the person signing the
26return may be liable for perjury.

 

 

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1    The foregoing portion of this Section concerning the
2filing of an annual information return shall not apply to a
3serviceman who is not required to file an income tax return
4with the United States Government.
5    As soon as possible after the first day of each month, upon
6certification of the Department of Revenue, the Comptroller
7shall order transferred and the Treasurer shall transfer from
8the General Revenue Fund to the Motor Fuel Tax Fund an amount
9equal to 1.7% of 80% of the net revenue realized under this Act
10for the second preceding month. Beginning April 1, 2000, this
11transfer is no longer required and shall not be made.
12    Net revenue realized for a month shall be the revenue
13collected by the State pursuant to this Act, less the amount
14paid out during that month as refunds to taxpayers for
15overpayment of liability.
16    For greater simplicity of administration, it shall be
17permissible for manufacturers, importers and wholesalers whose
18products are sold by numerous servicemen in Illinois, and who
19wish to do so, to assume the responsibility for accounting and
20paying to the Department all tax accruing under this Act with
21respect to such sales, if the servicemen who are affected do
22not make written objection to the Department to this
23arrangement.
24(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
25103-363, eff. 7-28-23; revised 9-25-23.)
 

 

 

HB4655- 156 -LRB103 36446 HLH 67754 b

1    Section 920. ***ADDITIONAL INFORMATION*** is amended by
2changing Section 3 ***PLACE IN TEXT BELOW***
3***ADDITIONAL INFORMATION*** is amended by changing Section
42-5 ***PLACE IN TEXT BELOW***
5The Retailers' Occupation Tax Act is amended by changing
6Sections 2-5 and 3 as follows:
 
7    (35 ILCS 120/2-5)
8    Sec. 2-5. Exemptions. Gross receipts from proceeds from
9the sale of the following tangible personal property are
10exempt from the tax imposed by this Act:
11        (1) Farm chemicals.
12        (2) Farm machinery and equipment, both new and used,
13    including that manufactured on special order, certified by
14    the purchaser to be used primarily for production
15    agriculture or State or federal agricultural programs,
16    including individual replacement parts for the machinery
17    and equipment, including machinery and equipment purchased
18    for lease, and including implements of husbandry defined
19    in Section 1-130 of the Illinois Vehicle Code, farm
20    machinery and agricultural chemical and fertilizer
21    spreaders, and nurse wagons required to be registered
22    under Section 3-809 of the Illinois Vehicle Code, but
23    excluding other motor vehicles required to be registered
24    under the Illinois Vehicle Code. Horticultural polyhouses
25    or hoop houses used for propagating, growing, or

 

 

HB4655- 157 -LRB103 36446 HLH 67754 b

1    overwintering plants shall be considered farm machinery
2    and equipment under this item (2). Agricultural chemical
3    tender tanks and dry boxes shall include units sold
4    separately from a motor vehicle required to be licensed
5    and units sold mounted on a motor vehicle required to be
6    licensed, if the selling price of the tender is separately
7    stated.
8        Farm machinery and equipment shall include precision
9    farming equipment that is installed or purchased to be
10    installed on farm machinery and equipment including, but
11    not limited to, tractors, harvesters, sprayers, planters,
12    seeders, or spreaders. Precision farming equipment
13    includes, but is not limited to, soil testing sensors,
14    computers, monitors, software, global positioning and
15    mapping systems, and other such equipment.
16        Farm machinery and equipment also includes computers,
17    sensors, software, and related equipment used primarily in
18    the computer-assisted operation of production agriculture
19    facilities, equipment, and activities such as, but not
20    limited to, the collection, monitoring, and correlation of
21    animal and crop data for the purpose of formulating animal
22    diets and agricultural chemicals.
23        Beginning on January 1, 2024, farm machinery and
24    equipment also includes electrical power generation
25    equipment used primarily for production agriculture.
26        This item (2) is exempt from the provisions of Section

 

 

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1    2-70.
2        (3) Until July 1, 2003, distillation machinery and
3    equipment, sold as a unit or kit, assembled or installed
4    by the retailer, certified by the user to be used only for
5    the production of ethyl alcohol that will be used for
6    consumption as motor fuel or as a component of motor fuel
7    for the personal use of the user, and not subject to sale
8    or resale.
9        (4) Until July 1, 2003 and beginning again September
10    1, 2004 through August 30, 2014, graphic arts machinery
11    and equipment, including repair and replacement parts,
12    both new and used, and including that manufactured on
13    special order or purchased for lease, certified by the
14    purchaser to be used primarily for graphic arts
15    production. Equipment includes chemicals or chemicals
16    acting as catalysts but only if the chemicals or chemicals
17    acting as catalysts effect a direct and immediate change
18    upon a graphic arts product. Beginning on July 1, 2017,
19    graphic arts machinery and equipment is included in the
20    manufacturing and assembling machinery and equipment
21    exemption under paragraph (14).
22        (5) A motor vehicle that is used for automobile
23    renting, as defined in the Automobile Renting Occupation
24    and Use Tax Act. This paragraph is exempt from the
25    provisions of Section 2-70.
26        (6) Personal property sold by a teacher-sponsored

 

 

HB4655- 159 -LRB103 36446 HLH 67754 b

1    student organization affiliated with an elementary or
2    secondary school located in Illinois.
3        (7) Until July 1, 2003, proceeds of that portion of
4    the selling price of a passenger car the sale of which is
5    subject to the Replacement Vehicle Tax.
6        (8) Personal property sold to an Illinois county fair
7    association for use in conducting, operating, or promoting
8    the county fair.
9        (9) Personal property sold to a not-for-profit arts or
10    cultural organization that establishes, by proof required
11    by the Department by rule, that it has received an
12    exemption under Section 501(c)(3) of the Internal Revenue
13    Code and that is organized and operated primarily for the
14    presentation or support of arts or cultural programming,
15    activities, or services. These organizations include, but
16    are not limited to, music and dramatic arts organizations
17    such as symphony orchestras and theatrical groups, arts
18    and cultural service organizations, local arts councils,
19    visual arts organizations, and media arts organizations.
20    On and after July 1, 2001 (the effective date of Public Act
21    92-35), however, an entity otherwise eligible for this
22    exemption shall not make tax-free purchases unless it has
23    an active identification number issued by the Department.
24        (10) Personal property sold by a corporation, society,
25    association, foundation, institution, or organization,
26    other than a limited liability company, that is organized

 

 

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1    and operated as a not-for-profit service enterprise for
2    the benefit of persons 65 years of age or older if the
3    personal property was not purchased by the enterprise for
4    the purpose of resale by the enterprise.
5        (11) Except as otherwise provided in this Section,
6    personal property sold to a governmental body, to a
7    corporation, society, association, foundation, or
8    institution organized and operated exclusively for
9    charitable, religious, or educational purposes, or to a
10    not-for-profit corporation, society, association,
11    foundation, institution, or organization that has no
12    compensated officers or employees and that is organized
13    and operated primarily for the recreation of persons 55
14    years of age or older. A limited liability company may
15    qualify for the exemption under this paragraph only if the
16    limited liability company is organized and operated
17    exclusively for educational purposes. On and after July 1,
18    1987, however, no entity otherwise eligible for this
19    exemption shall make tax-free purchases unless it has an
20    active identification number issued by the Department.
21        (12) (Blank).
22        (12-5) On and after July 1, 2003 and through June 30,
23    2004, motor vehicles of the second division with a gross
24    vehicle weight in excess of 8,000 pounds that are subject
25    to the commercial distribution fee imposed under Section
26    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,

 

 

HB4655- 161 -LRB103 36446 HLH 67754 b

1    2004 and through June 30, 2005, the use in this State of
2    motor vehicles of the second division: (i) with a gross
3    vehicle weight rating in excess of 8,000 pounds; (ii) that
4    are subject to the commercial distribution fee imposed
5    under Section 3-815.1 of the Illinois Vehicle Code; and
6    (iii) that are primarily used for commercial purposes.
7    Through June 30, 2005, this exemption applies to repair
8    and replacement parts added after the initial purchase of
9    such a motor vehicle if that motor vehicle is used in a
10    manner that would qualify for the rolling stock exemption
11    otherwise provided for in this Act. For purposes of this
12    paragraph, "used for commercial purposes" means the
13    transportation of persons or property in furtherance of
14    any commercial or industrial enterprise whether for-hire
15    or not.
16        (13) Proceeds from sales to owners, lessors, or
17    shippers of tangible personal property that is utilized by
18    interstate carriers for hire for use as rolling stock
19    moving in interstate commerce and equipment operated by a
20    telecommunications provider, licensed as a common carrier
21    by the Federal Communications Commission, which is
22    permanently installed in or affixed to aircraft moving in
23    interstate commerce.
24        (14) Machinery and equipment that will be used by the
25    purchaser, or a lessee of the purchaser, primarily in the
26    process of manufacturing or assembling tangible personal

 

 

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1    property for wholesale or retail sale or lease, whether
2    the sale or lease is made directly by the manufacturer or
3    by some other person, whether the materials used in the
4    process are owned by the manufacturer or some other
5    person, or whether the sale or lease is made apart from or
6    as an incident to the seller's engaging in the service
7    occupation of producing machines, tools, dies, jigs,
8    patterns, gauges, or other similar items of no commercial
9    value on special order for a particular purchaser. The
10    exemption provided by this paragraph (14) does not include
11    machinery and equipment used in (i) the generation of
12    electricity for wholesale or retail sale; (ii) the
13    generation or treatment of natural or artificial gas for
14    wholesale or retail sale that is delivered to customers
15    through pipes, pipelines, or mains; or (iii) the treatment
16    of water for wholesale or retail sale that is delivered to
17    customers through pipes, pipelines, or mains. The
18    provisions of Public Act 98-583 are declaratory of
19    existing law as to the meaning and scope of this
20    exemption. Beginning on July 1, 2017, the exemption
21    provided by this paragraph (14) includes, but is not
22    limited to, graphic arts machinery and equipment, as
23    defined in paragraph (4) of this Section.
24        (15) Proceeds of mandatory service charges separately
25    stated on customers' bills for purchase and consumption of
26    food and beverages, to the extent that the proceeds of the

 

 

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1    service charge are in fact turned over as tips or as a
2    substitute for tips to the employees who participate
3    directly in preparing, serving, hosting or cleaning up the
4    food or beverage function with respect to which the
5    service charge is imposed.
6        (16) Tangible personal property sold to a purchaser if
7    the purchaser is exempt from use tax by operation of
8    federal law. This paragraph is exempt from the provisions
9    of Section 2-70.
10        (17) Tangible personal property sold to a common
11    carrier by rail or motor that receives the physical
12    possession of the property in Illinois and that transports
13    the property, or shares with another common carrier in the
14    transportation of the property, out of Illinois on a
15    standard uniform bill of lading showing the seller of the
16    property as the shipper or consignor of the property to a
17    destination outside Illinois, for use outside Illinois.
18        (18) Legal tender, currency, medallions, or gold or
19    silver coinage issued by the State of Illinois, the
20    government of the United States of America, or the
21    government of any foreign country, and bullion.
22        (19) Until July 1, 2003, oil field exploration,
23    drilling, and production equipment, including (i) rigs and
24    parts of rigs, rotary rigs, cable tool rigs, and workover
25    rigs, (ii) pipe and tubular goods, including casing and
26    drill strings, (iii) pumps and pump-jack units, (iv)

 

 

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1    storage tanks and flow lines, (v) any individual
2    replacement part for oil field exploration, drilling, and
3    production equipment, and (vi) machinery and equipment
4    purchased for lease; but excluding motor vehicles required
5    to be registered under the Illinois Vehicle Code.
6        (20) Photoprocessing machinery and equipment,
7    including repair and replacement parts, both new and used,
8    including that manufactured on special order, certified by
9    the purchaser to be used primarily for photoprocessing,
10    and including photoprocessing machinery and equipment
11    purchased for lease.
12        (21) Until July 1, 2028, coal and aggregate
13    exploration, mining, off-highway hauling, processing,
14    maintenance, and reclamation equipment, including
15    replacement parts and equipment, and including equipment
16    purchased for lease, but excluding motor vehicles required
17    to be registered under the Illinois Vehicle Code. The
18    changes made to this Section by Public Act 97-767 apply on
19    and after July 1, 2003, but no claim for credit or refund
20    is allowed on or after August 16, 2013 (the effective date
21    of Public Act 98-456) for such taxes paid during the
22    period beginning July 1, 2003 and ending on August 16,
23    2013 (the effective date of Public Act 98-456).
24        (22) Until June 30, 2013, fuel and petroleum products
25    sold to or used by an air carrier, certified by the carrier
26    to be used for consumption, shipment, or storage in the

 

 

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1    conduct of its business as an air common carrier, for a
2    flight destined for or returning from a location or
3    locations outside the United States without regard to
4    previous or subsequent domestic stopovers.
5        Beginning July 1, 2013, fuel and petroleum products
6    sold to or used by an air carrier, certified by the carrier
7    to be used for consumption, shipment, or storage in the
8    conduct of its business as an air common carrier, for a
9    flight that (i) is engaged in foreign trade or is engaged
10    in trade between the United States and any of its
11    possessions and (ii) transports at least one individual or
12    package for hire from the city of origination to the city
13    of final destination on the same aircraft, without regard
14    to a change in the flight number of that aircraft.
15        (23) A transaction in which the purchase order is
16    received by a florist who is located outside Illinois, but
17    who has a florist located in Illinois deliver the property
18    to the purchaser or the purchaser's donee in Illinois.
19        (24) Fuel consumed or used in the operation of ships,
20    barges, or vessels that are used primarily in or for the
21    transportation of property or the conveyance of persons
22    for hire on rivers bordering on this State if the fuel is
23    delivered by the seller to the purchaser's barge, ship, or
24    vessel while it is afloat upon that bordering river.
25        (25) Except as provided in item (25-5) of this
26    Section, a motor vehicle sold in this State to a

 

 

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1    nonresident even though the motor vehicle is delivered to
2    the nonresident in this State, if the motor vehicle is not
3    to be titled in this State, and if a drive-away permit is
4    issued to the motor vehicle as provided in Section 3-603
5    of the Illinois Vehicle Code or if the nonresident
6    purchaser has vehicle registration plates to transfer to
7    the motor vehicle upon returning to his or her home state.
8    The issuance of the drive-away permit or having the
9    out-of-state registration plates to be transferred is
10    prima facie evidence that the motor vehicle will not be
11    titled in this State.
12        (25-5) The exemption under item (25) does not apply if
13    the state in which the motor vehicle will be titled does
14    not allow a reciprocal exemption for a motor vehicle sold
15    and delivered in that state to an Illinois resident but
16    titled in Illinois. The tax collected under this Act on
17    the sale of a motor vehicle in this State to a resident of
18    another state that does not allow a reciprocal exemption
19    shall be imposed at a rate equal to the state's rate of tax
20    on taxable property in the state in which the purchaser is
21    a resident, except that the tax shall not exceed the tax
22    that would otherwise be imposed under this Act. At the
23    time of the sale, the purchaser shall execute a statement,
24    signed under penalty of perjury, of his or her intent to
25    title the vehicle in the state in which the purchaser is a
26    resident within 30 days after the sale and of the fact of

 

 

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1    the payment to the State of Illinois of tax in an amount
2    equivalent to the state's rate of tax on taxable property
3    in his or her state of residence and shall submit the
4    statement to the appropriate tax collection agency in his
5    or her state of residence. In addition, the retailer must
6    retain a signed copy of the statement in his or her
7    records. Nothing in this item shall be construed to
8    require the removal of the vehicle from this state
9    following the filing of an intent to title the vehicle in
10    the purchaser's state of residence if the purchaser titles
11    the vehicle in his or her state of residence within 30 days
12    after the date of sale. The tax collected under this Act in
13    accordance with this item (25-5) shall be proportionately
14    distributed as if the tax were collected at the 6.25%
15    general rate imposed under this Act.
16        (25-7) Beginning on July 1, 2007, no tax is imposed
17    under this Act on the sale of an aircraft, as defined in
18    Section 3 of the Illinois Aeronautics Act, if all of the
19    following conditions are met:
20            (1) the aircraft leaves this State within 15 days
21        after the later of either the issuance of the final
22        billing for the sale of the aircraft, or the
23        authorized approval for return to service, completion
24        of the maintenance record entry, and completion of the
25        test flight and ground test for inspection, as
26        required by 14 CFR 91.407;

 

 

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1            (2) the aircraft is not based or registered in
2        this State after the sale of the aircraft; and
3            (3) the seller retains in his or her books and
4        records and provides to the Department a signed and
5        dated certification from the purchaser, on a form
6        prescribed by the Department, certifying that the
7        requirements of this item (25-7) are met. The
8        certificate must also include the name and address of
9        the purchaser, the address of the location where the
10        aircraft is to be titled or registered, the address of
11        the primary physical location of the aircraft, and
12        other information that the Department may reasonably
13        require.
14        For purposes of this item (25-7):
15        "Based in this State" means hangared, stored, or
16    otherwise used, excluding post-sale customizations as
17    defined in this Section, for 10 or more days in each
18    12-month period immediately following the date of the sale
19    of the aircraft.
20        "Registered in this State" means an aircraft
21    registered with the Department of Transportation,
22    Aeronautics Division, or titled or registered with the
23    Federal Aviation Administration to an address located in
24    this State.
25        This paragraph (25-7) is exempt from the provisions of
26    Section 2-70.

 

 

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1        (26) Semen used for artificial insemination of
2    livestock for direct agricultural production.
3        (27) Horses, or interests in horses, registered with
4    and meeting the requirements of any of the Arabian Horse
5    Club Registry of America, Appaloosa Horse Club, American
6    Quarter Horse Association, United States Trotting
7    Association, or Jockey Club, as appropriate, used for
8    purposes of breeding or racing for prizes. This item (27)
9    is exempt from the provisions of Section 2-70, and the
10    exemption provided for under this item (27) applies for
11    all periods beginning May 30, 1995, but no claim for
12    credit or refund is allowed on or after January 1, 2008
13    (the effective date of Public Act 95-88) for such taxes
14    paid during the period beginning May 30, 2000 and ending
15    on January 1, 2008 (the effective date of Public Act
16    95-88).
17        (28) Computers and communications equipment utilized
18    for any hospital purpose and equipment used in the
19    diagnosis, analysis, or treatment of hospital patients
20    sold to a lessor who leases the equipment, under a lease of
21    one year or longer executed or in effect at the time of the
22    purchase, to a hospital that has been issued an active tax
23    exemption identification number by the Department under
24    Section 1g of this Act.
25        (29) Personal property sold to a lessor who leases the
26    property, under a lease of one year or longer executed or

 

 

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1    in effect at the time of the purchase, to a governmental
2    body that has been issued an active tax exemption
3    identification number by the Department under Section 1g
4    of this Act.
5        (30) Beginning with taxable years ending on or after
6    December 31, 1995 and ending with taxable years ending on
7    or before December 31, 2004, personal property that is
8    donated for disaster relief to be used in a State or
9    federally declared disaster area in Illinois or bordering
10    Illinois by a manufacturer or retailer that is registered
11    in this State to a corporation, society, association,
12    foundation, or institution that has been issued a sales
13    tax exemption identification number by the Department that
14    assists victims of the disaster who reside within the
15    declared disaster area.
16        (31) Beginning with taxable years ending on or after
17    December 31, 1995 and ending with taxable years ending on
18    or before December 31, 2004, personal property that is
19    used in the performance of infrastructure repairs in this
20    State, including, but not limited to, municipal roads and
21    streets, access roads, bridges, sidewalks, waste disposal
22    systems, water and sewer line extensions, water
23    distribution and purification facilities, storm water
24    drainage and retention facilities, and sewage treatment
25    facilities, resulting from a State or federally declared
26    disaster in Illinois or bordering Illinois when such

 

 

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1    repairs are initiated on facilities located in the
2    declared disaster area within 6 months after the disaster.
3        (32) Beginning July 1, 1999, game or game birds sold
4    at a "game breeding and hunting preserve area" as that
5    term is used in the Wildlife Code. This paragraph is
6    exempt from the provisions of Section 2-70.
7        (33) A motor vehicle, as that term is defined in
8    Section 1-146 of the Illinois Vehicle Code, that is
9    donated to a corporation, limited liability company,
10    society, association, foundation, or institution that is
11    determined by the Department to be organized and operated
12    exclusively for educational purposes. For purposes of this
13    exemption, "a corporation, limited liability company,
14    society, association, foundation, or institution organized
15    and operated exclusively for educational purposes" means
16    all tax-supported public schools, private schools that
17    offer systematic instruction in useful branches of
18    learning by methods common to public schools and that
19    compare favorably in their scope and intensity with the
20    course of study presented in tax-supported schools, and
21    vocational or technical schools or institutes organized
22    and operated exclusively to provide a course of study of
23    not less than 6 weeks duration and designed to prepare
24    individuals to follow a trade or to pursue a manual,
25    technical, mechanical, industrial, business, or commercial
26    occupation.

 

 

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1        (34) Beginning January 1, 2000, personal property,
2    including food, purchased through fundraising events for
3    the benefit of a public or private elementary or secondary
4    school, a group of those schools, or one or more school
5    districts if the events are sponsored by an entity
6    recognized by the school district that consists primarily
7    of volunteers and includes parents and teachers of the
8    school children. This paragraph does not apply to
9    fundraising events (i) for the benefit of private home
10    instruction or (ii) for which the fundraising entity
11    purchases the personal property sold at the events from
12    another individual or entity that sold the property for
13    the purpose of resale by the fundraising entity and that
14    profits from the sale to the fundraising entity. This
15    paragraph is exempt from the provisions of Section 2-70.
16        (35) Beginning January 1, 2000 and through December
17    31, 2001, new or used automatic vending machines that
18    prepare and serve hot food and beverages, including
19    coffee, soup, and other items, and replacement parts for
20    these machines. Beginning January 1, 2002 and through June
21    30, 2003, machines and parts for machines used in
22    commercial, coin-operated amusement and vending business
23    if a use or occupation tax is paid on the gross receipts
24    derived from the use of the commercial, coin-operated
25    amusement and vending machines. This paragraph is exempt
26    from the provisions of Section 2-70.

 

 

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1        (35-5) Beginning August 23, 2001 and through June 30,
2    2016, food for human consumption that is to be consumed
3    off the premises where it is sold (other than alcoholic
4    beverages, soft drinks, and food that has been prepared
5    for immediate consumption) and prescription and
6    nonprescription medicines, drugs, medical appliances, and
7    insulin, urine testing materials, syringes, and needles
8    used by diabetics, for human use, when purchased for use
9    by a person receiving medical assistance under Article V
10    of the Illinois Public Aid Code who resides in a licensed
11    long-term care facility, as defined in the Nursing Home
12    Care Act, or a licensed facility as defined in the ID/DD
13    Community Care Act, the MC/DD Act, or the Specialized
14    Mental Health Rehabilitation Act of 2013.
15        (36) Beginning August 2, 2001, computers and
16    communications equipment utilized for any hospital purpose
17    and equipment used in the diagnosis, analysis, or
18    treatment of hospital patients sold to a lessor who leases
19    the equipment, under a lease of one year or longer
20    executed or in effect at the time of the purchase, to a
21    hospital that has been issued an active tax exemption
22    identification number by the Department under Section 1g
23    of this Act. This paragraph is exempt from the provisions
24    of Section 2-70.
25        (37) Beginning August 2, 2001, personal property sold
26    to a lessor who leases the property, under a lease of one

 

 

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1    year or longer executed or in effect at the time of the
2    purchase, to a governmental body that has been issued an
3    active tax exemption identification number by the
4    Department under Section 1g of this Act. This paragraph is
5    exempt from the provisions of Section 2-70.
6        (38) Beginning on January 1, 2002 and through June 30,
7    2016, tangible personal property purchased from an
8    Illinois retailer by a taxpayer engaged in centralized
9    purchasing activities in Illinois who will, upon receipt
10    of the property in Illinois, temporarily store the
11    property in Illinois (i) for the purpose of subsequently
12    transporting it outside this State for use or consumption
13    thereafter solely outside this State or (ii) for the
14    purpose of being processed, fabricated, or manufactured
15    into, attached to, or incorporated into other tangible
16    personal property to be transported outside this State and
17    thereafter used or consumed solely outside this State. The
18    Director of Revenue shall, pursuant to rules adopted in
19    accordance with the Illinois Administrative Procedure Act,
20    issue a permit to any taxpayer in good standing with the
21    Department who is eligible for the exemption under this
22    paragraph (38). The permit issued under this paragraph
23    (38) shall authorize the holder, to the extent and in the
24    manner specified in the rules adopted under this Act, to
25    purchase tangible personal property from a retailer exempt
26    from the taxes imposed by this Act. Taxpayers shall

 

 

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1    maintain all necessary books and records to substantiate
2    the use and consumption of all such tangible personal
3    property outside of the State of Illinois.
4        (39) Beginning January 1, 2008, tangible personal
5    property used in the construction or maintenance of a
6    community water supply, as defined under Section 3.145 of
7    the Environmental Protection Act, that is operated by a
8    not-for-profit corporation that holds a valid water supply
9    permit issued under Title IV of the Environmental
10    Protection Act. This paragraph is exempt from the
11    provisions of Section 2-70.
12        (40) Beginning January 1, 2010 and continuing through
13    December 31, 2029, materials, parts, equipment,
14    components, and furnishings incorporated into or upon an
15    aircraft as part of the modification, refurbishment,
16    completion, replacement, repair, or maintenance of the
17    aircraft. This exemption includes consumable supplies used
18    in the modification, refurbishment, completion,
19    replacement, repair, and maintenance of aircraft. However,
20    until January 1, 2024, this exemption excludes any
21    materials, parts, equipment, components, and consumable
22    supplies used in the modification, replacement, repair,
23    and maintenance of aircraft engines or power plants,
24    whether such engines or power plants are installed or
25    uninstalled upon any such aircraft. "Consumable supplies"
26    include, but are not limited to, adhesive, tape,

 

 

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1    sandpaper, general purpose lubricants, cleaning solution,
2    latex gloves, and protective films.
3        Beginning January 1, 2010 and continuing through
4    December 31, 2023, this exemption applies only to the sale
5    of qualifying tangible personal property to persons who
6    modify, refurbish, complete, replace, or maintain an
7    aircraft and who (i) hold an Air Agency Certificate and
8    are empowered to operate an approved repair station by the
9    Federal Aviation Administration, (ii) have a Class IV
10    Rating, and (iii) conduct operations in accordance with
11    Part 145 of the Federal Aviation Regulations. The
12    exemption does not include aircraft operated by a
13    commercial air carrier providing scheduled passenger air
14    service pursuant to authority issued under Part 121 or
15    Part 129 of the Federal Aviation Regulations. From January
16    1, 2024 through December 31, 2029, this exemption applies
17    only to the use of qualifying tangible personal property
18    by: (A) persons who modify, refurbish, complete, repair,
19    replace, or maintain aircraft and who (i) hold an Air
20    Agency Certificate and are empowered to operate an
21    approved repair station by the Federal Aviation
22    Administration, (ii) have a Class IV Rating, and (iii)
23    conduct operations in accordance with Part 145 of the
24    Federal Aviation Regulations; and (B) persons who engage
25    in the modification, replacement, repair, and maintenance
26    of aircraft engines or power plants without regard to

 

 

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1    whether or not those persons meet the qualifications of
2    item (A).
3        The changes made to this paragraph (40) by Public Act
4    98-534 are declarative of existing law. It is the intent
5    of the General Assembly that the exemption under this
6    paragraph (40) applies continuously from January 1, 2010
7    through December 31, 2024; however, no claim for credit or
8    refund is allowed for taxes paid as a result of the
9    disallowance of this exemption on or after January 1, 2015
10    and prior to February 5, 2020 (the effective date of
11    Public Act 101-629).
12        (41) Tangible personal property sold to a
13    public-facilities corporation, as described in Section
14    11-65-10 of the Illinois Municipal Code, for purposes of
15    constructing or furnishing a municipal convention hall,
16    but only if the legal title to the municipal convention
17    hall is transferred to the municipality without any
18    further consideration by or on behalf of the municipality
19    at the time of the completion of the municipal convention
20    hall or upon the retirement or redemption of any bonds or
21    other debt instruments issued by the public-facilities
22    corporation in connection with the development of the
23    municipal convention hall. This exemption includes
24    existing public-facilities corporations as provided in
25    Section 11-65-25 of the Illinois Municipal Code. This
26    paragraph is exempt from the provisions of Section 2-70.

 

 

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1        (42) Beginning January 1, 2017 and through December
2    31, 2026, menstrual pads, tampons, and menstrual cups.
3        (43) Merchandise that is subject to the Rental
4    Purchase Agreement Occupation and Use Tax. The purchaser
5    must certify that the item is purchased to be rented
6    subject to a rental-purchase rental purchase agreement, as
7    defined in the Rental-Purchase Rental Purchase Agreement
8    Act, and provide proof of registration under the Rental
9    Purchase Agreement Occupation and Use Tax Act. This
10    paragraph is exempt from the provisions of Section 2-70.
11        (44) Qualified tangible personal property used in the
12    construction or operation of a data center that has been
13    granted a certificate of exemption by the Department of
14    Commerce and Economic Opportunity, whether that tangible
15    personal property is purchased by the owner, operator, or
16    tenant of the data center or by a contractor or
17    subcontractor of the owner, operator, or tenant. Data
18    centers that would have qualified for a certificate of
19    exemption prior to January 1, 2020 had Public Act 101-31
20    been in effect, may apply for and obtain an exemption for
21    subsequent purchases of computer equipment or enabling
22    software purchased or leased to upgrade, supplement, or
23    replace computer equipment or enabling software purchased
24    or leased in the original investment that would have
25    qualified.
26        The Department of Commerce and Economic Opportunity

 

 

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1    shall grant a certificate of exemption under this item
2    (44) to qualified data centers as defined by Section
3    605-1025 of the Department of Commerce and Economic
4    Opportunity Law of the Civil Administrative Code of
5    Illinois.
6        For the purposes of this item (44):
7            "Data center" means a building or a series of
8        buildings rehabilitated or constructed to house
9        working servers in one physical location or multiple
10        sites within the State of Illinois.
11            "Qualified tangible personal property" means:
12        electrical systems and equipment; climate control and
13        chilling equipment and systems; mechanical systems and
14        equipment; monitoring and secure systems; emergency
15        generators; hardware; computers; servers; data storage
16        devices; network connectivity equipment; racks;
17        cabinets; telecommunications cabling infrastructure;
18        raised floor systems; peripheral components or
19        systems; software; mechanical, electrical, or plumbing
20        systems; battery systems; cooling systems and towers;
21        temperature control systems; other cabling; and other
22        data center infrastructure equipment and systems
23        necessary to operate qualified tangible personal
24        property, including fixtures; and component parts of
25        any of the foregoing, including installation,
26        maintenance, repair, refurbishment, and replacement of

 

 

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1        qualified tangible personal property to generate,
2        transform, transmit, distribute, or manage electricity
3        necessary to operate qualified tangible personal
4        property; and all other tangible personal property
5        that is essential to the operations of a computer data
6        center. The term "qualified tangible personal
7        property" also includes building materials physically
8        incorporated into the qualifying data center. To
9        document the exemption allowed under this Section, the
10        retailer must obtain from the purchaser a copy of the
11        certificate of eligibility issued by the Department of
12        Commerce and Economic Opportunity.
13        This item (44) is exempt from the provisions of
14    Section 2-70.
15        (45) Beginning January 1, 2020 and through December
16    31, 2020, sales of tangible personal property made by a
17    marketplace seller over a marketplace for which tax is due
18    under this Act but for which use tax has been collected and
19    remitted to the Department by a marketplace facilitator
20    under Section 2d of the Use Tax Act are exempt from tax
21    under this Act. A marketplace seller claiming this
22    exemption shall maintain books and records demonstrating
23    that the use tax on such sales has been collected and
24    remitted by a marketplace facilitator. Marketplace sellers
25    that have properly remitted tax under this Act on such
26    sales may file a claim for credit as provided in Section 6

 

 

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1    of this Act. No claim is allowed, however, for such taxes
2    for which a credit or refund has been issued to the
3    marketplace facilitator under the Use Tax Act, or for
4    which the marketplace facilitator has filed a claim for
5    credit or refund under the Use Tax Act.
6        (46) Beginning July 1, 2022, breast pumps, breast pump
7    collection and storage supplies, and breast pump kits.
8    This item (46) is exempt from the provisions of Section
9    2-70. As used in this item (46):
10        "Breast pump" means an electrically controlled or
11    manually controlled pump device designed or marketed to be
12    used to express milk from a human breast during lactation,
13    including the pump device and any battery, AC adapter, or
14    other power supply unit that is used to power the pump
15    device and is packaged and sold with the pump device at the
16    time of sale.
17        "Breast pump collection and storage supplies" means
18    items of tangible personal property designed or marketed
19    to be used in conjunction with a breast pump to collect
20    milk expressed from a human breast and to store collected
21    milk until it is ready for consumption.
22        "Breast pump collection and storage supplies"
23    includes, but is not limited to: breast shields and breast
24    shield connectors; breast pump tubes and tubing adapters;
25    breast pump valves and membranes; backflow protectors and
26    backflow protector adaptors; bottles and bottle caps

 

 

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1    specific to the operation of the breast pump; and breast
2    milk storage bags.
3        "Breast pump collection and storage supplies" does not
4    include: (1) bottles and bottle caps not specific to the
5    operation of the breast pump; (2) breast pump travel bags
6    and other similar carrying accessories, including ice
7    packs, labels, and other similar products; (3) breast pump
8    cleaning supplies; (4) nursing bras, bra pads, breast
9    shells, and other similar products; and (5) creams,
10    ointments, and other similar products that relieve
11    breastfeeding-related symptoms or conditions of the
12    breasts or nipples, unless sold as part of a breast pump
13    kit that is pre-packaged by the breast pump manufacturer
14    or distributor.
15        "Breast pump kit" means a kit that: (1) contains no
16    more than a breast pump, breast pump collection and
17    storage supplies, a rechargeable battery for operating the
18    breast pump, a breastmilk cooler, bottle stands, ice
19    packs, and a breast pump carrying case; and (2) is
20    pre-packaged as a breast pump kit by the breast pump
21    manufacturer or distributor.
22        (47) Tangible personal property sold by or on behalf
23    of the State Treasurer pursuant to the Revised Uniform
24    Unclaimed Property Act. This item (47) is exempt from the
25    provisions of Section 2-70.
26        (48) Beginning on January 1, 2024, tangible personal

 

 

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1    property purchased by an active duty member of the armed
2    forces of the United States who presents valid military
3    identification and purchases the property using a form of
4    payment where the federal government is the payor. The
5    member of the armed forces must complete, at the point of
6    sale, a form prescribed by the Department of Revenue
7    documenting that the transaction is eligible for the
8    exemption under this paragraph. Retailers must keep the
9    form as documentation of the exemption in their records
10    for a period of not less than 6 years. "Armed forces of the
11    United States" means the United States Army, Navy, Air
12    Force, Marine Corps, or Coast Guard. This paragraph is
13    exempt from the provisions of Section 2-70.
14        (49) Qualified tangible personal property used in the
15    construction or operation of a megaproject for which a
16    certificate has been issued by the Department of Revenue
17    as described and defined in Division 22 of Article 10 of
18    the Property Tax Code, whether that tangible personal
19    property is purchased by the owner, operator, or tenant of
20    the megaproject or by a contractor or subcontractor of the
21    owner, operator, or tenant. For the purposes of this item
22    (49):
23        "Megaproject" has the meaning ascribed to that term in
24    Section 10-910 of the Property Tax Code.
25        "Qualified tangible personal property" means:
26    electrical systems and equipment; climate control and

 

 

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1    chilling equipment and systems; mechanical systems and
2    equipment; monitoring and security systems; emergency
3    generators; hardware; computers; servers; data storage
4    devices; network connectivity equipment; racks; cabinets;
5    telecommunications cabling infrastructure; raised floor
6    systems; peripheral components or systems; software;
7    mechanical, electrical, or plumbing systems; battery
8    systems; cooling systems and towers; temperature control
9    systems; other cabling; and other data center
10    infrastructure equipment and systems necessary to operate
11    qualified tangible personal property, including fixtures;
12    and component parts of any of the foregoing, including
13    installation, maintenance, repair, refurbishment, and
14    replacement of qualified tangible personal property to
15    generate, transform, transmit, distribute, or manage
16    electricity necessary to operate qualified tangible
17    personal property; and all other tangible personal
18    property that is essential to the operations of a
19    megaproject. The term "qualified tangible personal
20    property" also includes building materials to be
21    incorporated into the megaproject. To document the
22    exemption allowed under this Section, the retailer,
23    contractor or subcontractor or supplier must obtain from
24    the purchaser a copy of the certificate issued by the
25    Department of Revenue for the megaproject as described and
26    defined in Division 22 of Article 10 of the Property Tax

 

 

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1    Code.
2        This item (49) is exempt from the provisions of
3    Section 2-70.
4(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
5102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
6Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
75-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
85-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
96-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
1012-12-23.)
 
11    (35 ILCS 120/3)  (from Ch. 120, par. 442)
12    Sec. 3. Except as provided in this Section, on or before
13the twentieth day of each calendar month, every person engaged
14in the business of selling tangible personal property at
15retail in this State during the preceding calendar month shall
16file a return with the Department, stating:
17        1. The name of the seller;
18        2. His residence address and the address of his
19    principal place of business and the address of the
20    principal place of business (if that is a different
21    address) from which he engages in the business of selling
22    tangible personal property at retail in this State;
23        3. Total amount of receipts received by him during the
24    preceding calendar month or quarter, as the case may be,
25    from sales of tangible personal property, and from

 

 

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1    services furnished, by him during such preceding calendar
2    month or quarter;
3        4. Total amount received by him during the preceding
4    calendar month or quarter on charge and time sales of
5    tangible personal property, and from services furnished,
6    by him prior to the month or quarter for which the return
7    is filed;
8        5. Deductions allowed by law;
9        6. Gross receipts which were received by him during
10    the preceding calendar month or quarter and upon the basis
11    of which the tax is imposed, including gross receipts on
12    food for human consumption that is to be consumed off the
13    premises where it is sold (other than alcoholic beverages,
14    food consisting of or infused with adult use cannabis,
15    soft drinks, and food that has been prepared for immediate
16    consumption) which were received during the preceding
17    calendar month or quarter and upon which tax would have
18    been due but for the 0% rate imposed under Public Act
19    102-700;
20        7. The amount of credit provided in Section 2d of this
21    Act;
22        8. The amount of tax due, including the amount of tax
23    that would have been due on food for human consumption
24    that is to be consumed off the premises where it is sold
25    (other than alcoholic beverages, food consisting of or
26    infused with adult use cannabis, soft drinks, and food

 

 

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1    that has been prepared for immediate consumption) but for
2    the 0% rate imposed under Public Act 102-700;
3        9. The signature of the taxpayer; and
4        10. Such other reasonable information as the
5    Department may require.
6    On and after January 1, 2018, except for returns required
7to be filed prior to January 1, 2023 for motor vehicles,
8watercraft, aircraft, and trailers that are required to be
9registered with an agency of this State, with respect to
10retailers whose annual gross receipts average $20,000 or more,
11all returns required to be filed pursuant to this Act shall be
12filed electronically. On and after January 1, 2023, with
13respect to retailers whose annual gross receipts average
14$20,000 or more, all returns required to be filed pursuant to
15this Act, including, but not limited to, returns for motor
16vehicles, watercraft, aircraft, and trailers that are required
17to be registered with an agency of this State, shall be filed
18electronically. Retailers who demonstrate that they do not
19have access to the Internet or demonstrate hardship in filing
20electronically may petition the Department to waive the
21electronic filing requirement.
22    If a taxpayer fails to sign a return within 30 days after
23the proper notice and demand for signature by the Department,
24the return shall be considered valid and any amount shown to be
25due on the return shall be deemed assessed.
26    Each return shall be accompanied by the statement of

 

 

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1prepaid tax issued pursuant to Section 2e for which credit is
2claimed.
3    Prior to October 1, 2003, and on and after September 1,
42004, a retailer may accept a Manufacturer's Purchase Credit
5certification from a purchaser in satisfaction of Use Tax as
6provided in Section 3-85 of the Use Tax Act if the purchaser
7provides the appropriate documentation as required by Section
83-85 of the Use Tax Act. A Manufacturer's Purchase Credit
9certification, accepted by a retailer prior to October 1, 2003
10and on and after September 1, 2004 as provided in Section 3-85
11of the Use Tax Act, may be used by that retailer to satisfy
12Retailers' Occupation Tax liability in the amount claimed in
13the certification, not to exceed 6.25% of the receipts subject
14to tax from a qualifying purchase. A Manufacturer's Purchase
15Credit reported on any original or amended return filed under
16this Act after October 20, 2003 for reporting periods prior to
17September 1, 2004 shall be disallowed. Manufacturer's Purchase
18Credit reported on annual returns due on or after January 1,
192005 will be disallowed for periods prior to September 1,
202004. No Manufacturer's Purchase Credit may be used after
21September 30, 2003 through August 31, 2004 to satisfy any tax
22liability imposed under this Act, including any audit
23liability.
24    Beginning on July 1, 2023 and through December 31, 2032, a
25retailer may accept a Sustainable Aviation Fuel Purchase
26Credit certification from an air common carrier-purchaser in

 

 

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1satisfaction of Use Tax on aviation fuel as provided in
2Section 3-87 of the Use Tax Act if the purchaser provides the
3appropriate documentation as required by Section 3-87 of the
4Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
5certification accepted by a retailer in accordance with this
6paragraph may be used by that retailer to satisfy Retailers'
7Occupation Tax liability (but not in satisfaction of penalty
8or interest) in the amount claimed in the certification, not
9to exceed 6.25% of the receipts subject to tax from a sale of
10aviation fuel. In addition, for a sale of aviation fuel to
11qualify to earn the Sustainable Aviation Fuel Purchase Credit,
12retailers must retain in their books and records a
13certification from the producer of the aviation fuel that the
14aviation fuel sold by the retailer and for which a sustainable
15aviation fuel purchase credit was earned meets the definition
16of sustainable aviation fuel under Section 3-87 of the Use Tax
17Act. The documentation must include detail sufficient for the
18Department to determine the number of gallons of sustainable
19aviation fuel sold.
20    The Department may require returns to be filed on a
21quarterly basis. If so required, a return for each calendar
22quarter shall be filed on or before the twentieth day of the
23calendar month following the end of such calendar quarter. The
24taxpayer shall also file a return with the Department for each
25of the first 2 two months of each calendar quarter, on or
26before the twentieth day of the following calendar month,

 

 

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1stating:
2        1. The name of the seller;
3        2. The address of the principal place of business from
4    which he engages in the business of selling tangible
5    personal property at retail in this State;
6        3. The total amount of taxable receipts received by
7    him during the preceding calendar month from sales of
8    tangible personal property by him during such preceding
9    calendar month, including receipts from charge and time
10    sales, but less all deductions allowed by law;
11        4. The amount of credit provided in Section 2d of this
12    Act;
13        5. The amount of tax due; and
14        6. Such other reasonable information as the Department
15    may require.
16    Every person engaged in the business of selling aviation
17fuel at retail in this State during the preceding calendar
18month shall, instead of reporting and paying tax as otherwise
19required by this Section, report and pay such tax on a separate
20aviation fuel tax return. The requirements related to the
21return shall be as otherwise provided in this Section.
22Notwithstanding any other provisions of this Act to the
23contrary, retailers selling aviation fuel shall file all
24aviation fuel tax returns and shall make all aviation fuel tax
25payments by electronic means in the manner and form required
26by the Department. For purposes of this Section, "aviation

 

 

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1fuel" means jet fuel and aviation gasoline.
2    Beginning on October 1, 2003, any person who is not a
3licensed distributor, importing distributor, or manufacturer,
4as defined in the Liquor Control Act of 1934, but is engaged in
5the business of selling, at retail, alcoholic liquor shall
6file a statement with the Department of Revenue, in a format
7and at a time prescribed by the Department, showing the total
8amount paid for alcoholic liquor purchased during the
9preceding month and such other information as is reasonably
10required by the Department. The Department may adopt rules to
11require that this statement be filed in an electronic or
12telephonic format. Such rules may provide for exceptions from
13the filing requirements of this paragraph. For the purposes of
14this paragraph, the term "alcoholic liquor" shall have the
15meaning prescribed in the Liquor Control Act of 1934.
16    Beginning on October 1, 2003, every distributor, importing
17distributor, and manufacturer of alcoholic liquor as defined
18in the Liquor Control Act of 1934, shall file a statement with
19the Department of Revenue, no later than the 10th day of the
20month for the preceding month during which transactions
21occurred, by electronic means, showing the total amount of
22gross receipts from the sale of alcoholic liquor sold or
23distributed during the preceding month to purchasers;
24identifying the purchaser to whom it was sold or distributed;
25the purchaser's tax registration number; and such other
26information reasonably required by the Department. A

 

 

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1distributor, importing distributor, or manufacturer of
2alcoholic liquor must personally deliver, mail, or provide by
3electronic means to each retailer listed on the monthly
4statement a report containing a cumulative total of that
5distributor's, importing distributor's, or manufacturer's
6total sales of alcoholic liquor to that retailer no later than
7the 10th day of the month for the preceding month during which
8the transaction occurred. The distributor, importing
9distributor, or manufacturer shall notify the retailer as to
10the method by which the distributor, importing distributor, or
11manufacturer will provide the sales information. If the
12retailer is unable to receive the sales information by
13electronic means, the distributor, importing distributor, or
14manufacturer shall furnish the sales information by personal
15delivery or by mail. For purposes of this paragraph, the term
16"electronic means" includes, but is not limited to, the use of
17a secure Internet website, e-mail, or facsimile.
18    If a total amount of less than $1 is payable, refundable or
19creditable, such amount shall be disregarded if it is less
20than 50 cents and shall be increased to $1 if it is 50 cents or
21more.
22    Notwithstanding any other provision of this Act to the
23contrary, retailers subject to tax on cannabis shall file all
24cannabis tax returns and shall make all cannabis tax payments
25by electronic means in the manner and form required by the
26Department.

 

 

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1    Beginning October 1, 1993, a taxpayer who has an average
2monthly tax liability of $150,000 or more shall make all
3payments required by rules of the Department by electronic
4funds transfer. Beginning October 1, 1994, a taxpayer who has
5an average monthly tax liability of $100,000 or more shall
6make all payments required by rules of the Department by
7electronic funds transfer. Beginning October 1, 1995, a
8taxpayer who has an average monthly tax liability of $50,000
9or more shall make all payments required by rules of the
10Department by electronic funds transfer. Beginning October 1,
112000, a taxpayer who has an annual tax liability of $200,000 or
12more shall make all payments required by rules of the
13Department by electronic funds transfer. The term "annual tax
14liability" shall be the sum of the taxpayer's liabilities
15under this Act, and under all other State and local occupation
16and use tax laws administered by the Department, for the
17immediately preceding calendar year. The term "average monthly
18tax liability" shall be the sum of the taxpayer's liabilities
19under this Act, and under all other State and local occupation
20and use tax laws administered by the Department, for the
21immediately preceding calendar year divided by 12. Beginning
22on October 1, 2002, a taxpayer who has a tax liability in the
23amount set forth in subsection (b) of Section 2505-210 of the
24Department of Revenue Law shall make all payments required by
25rules of the Department by electronic funds transfer.
26    Before August 1 of each year beginning in 1993, the

 

 

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1Department shall notify all taxpayers required to make
2payments by electronic funds transfer. All taxpayers required
3to make payments by electronic funds transfer shall make those
4payments for a minimum of one year beginning on October 1.
5    Any taxpayer not required to make payments by electronic
6funds transfer may make payments by electronic funds transfer
7with the permission of the Department.
8    All taxpayers required to make payment by electronic funds
9transfer and any taxpayers authorized to voluntarily make
10payments by electronic funds transfer shall make those
11payments in the manner authorized by the Department.
12    The Department shall adopt such rules as are necessary to
13effectuate a program of electronic funds transfer and the
14requirements of this Section.
15    Any amount which is required to be shown or reported on any
16return or other document under this Act shall, if such amount
17is not a whole-dollar amount, be increased to the nearest
18whole-dollar amount in any case where the fractional part of a
19dollar is 50 cents or more, and decreased to the nearest
20whole-dollar amount where the fractional part of a dollar is
21less than 50 cents.
22    If the retailer is otherwise required to file a monthly
23return and if the retailer's average monthly tax liability to
24the Department does not exceed $200, the Department may
25authorize his returns to be filed on a quarter annual basis,
26with the return for January, February, and March of a given

 

 

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1year being due by April 20 of such year; with the return for
2April, May, and June of a given year being due by July 20 of
3such year; with the return for July, August, and September of a
4given year being due by October 20 of such year, and with the
5return for October, November, and December of a given year
6being due by January 20 of the following year.
7    If the retailer is otherwise required to file a monthly or
8quarterly return and if the retailer's average monthly tax
9liability with the Department does not exceed $50, the
10Department may authorize his returns to be filed on an annual
11basis, with the return for a given year being due by January 20
12of the following year.
13    Such quarter annual and annual returns, as to form and
14substance, shall be subject to the same requirements as
15monthly returns.
16    Notwithstanding any other provision in this Act concerning
17the time within which a retailer may file his return, in the
18case of any retailer who ceases to engage in a kind of business
19which makes him responsible for filing returns under this Act,
20such retailer shall file a final return under this Act with the
21Department not more than one month after discontinuing such
22business.
23    Where the same person has more than one business
24registered with the Department under separate registrations
25under this Act, such person may not file each return that is
26due as a single return covering all such registered

 

 

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1businesses, but shall file separate returns for each such
2registered business.
3    In addition, with respect to motor vehicles, watercraft,
4aircraft, and trailers that are required to be registered with
5an agency of this State, except as otherwise provided in this
6Section, every retailer selling this kind of tangible personal
7property shall file, with the Department, upon a form to be
8prescribed and supplied by the Department, a separate return
9for each such item of tangible personal property which the
10retailer sells, except that if, in the same transaction, (i) a
11retailer of aircraft, watercraft, motor vehicles, or trailers
12transfers more than one aircraft, watercraft, motor vehicle,
13or trailer to another aircraft, watercraft, motor vehicle
14retailer, or trailer retailer for the purpose of resale or
15(ii) a retailer of aircraft, watercraft, motor vehicles, or
16trailers transfers more than one aircraft, watercraft, motor
17vehicle, or trailer to a purchaser for use as a qualifying
18rolling stock as provided in Section 2-5 of this Act, then that
19seller may report the transfer of all aircraft, watercraft,
20motor vehicles, or trailers involved in that transaction to
21the Department on the same uniform invoice-transaction
22reporting return form. For purposes of this Section,
23"watercraft" means a Class 2, Class 3, or Class 4 watercraft as
24defined in Section 3-2 of the Boat Registration and Safety
25Act, a personal watercraft, or any boat equipped with an
26inboard motor.

 

 

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1    In addition, with respect to motor vehicles, watercraft,
2aircraft, and trailers that are required to be registered with
3an agency of this State, every person who is engaged in the
4business of leasing or renting such items and who, in
5connection with such business, sells any such item to a
6retailer for the purpose of resale is, notwithstanding any
7other provision of this Section to the contrary, authorized to
8meet the return-filing requirement of this Act by reporting
9the transfer of all the aircraft, watercraft, motor vehicles,
10or trailers transferred for resale during a month to the
11Department on the same uniform invoice-transaction reporting
12return form on or before the 20th of the month following the
13month in which the transfer takes place. Notwithstanding any
14other provision of this Act to the contrary, all returns filed
15under this paragraph must be filed by electronic means in the
16manner and form as required by the Department.
17    Any retailer who sells only motor vehicles, watercraft,
18aircraft, or trailers that are required to be registered with
19an agency of this State, so that all retailers' occupation tax
20liability is required to be reported, and is reported, on such
21transaction reporting returns and who is not otherwise
22required to file monthly or quarterly returns, need not file
23monthly or quarterly returns. However, those retailers shall
24be required to file returns on an annual basis.
25    The transaction reporting return, in the case of motor
26vehicles or trailers that are required to be registered with

 

 

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1an agency of this State, shall be the same document as the
2Uniform Invoice referred to in Section 5-402 of the Illinois
3Vehicle Code and must show the name and address of the seller;
4the name and address of the purchaser; the amount of the
5selling price including the amount allowed by the retailer for
6traded-in property, if any; the amount allowed by the retailer
7for the traded-in tangible personal property, if any, to the
8extent to which Section 1 of this Act allows an exemption for
9the value of traded-in property; the balance payable after
10deducting such trade-in allowance from the total selling
11price; the amount of tax due from the retailer with respect to
12such transaction; the amount of tax collected from the
13purchaser by the retailer on such transaction (or satisfactory
14evidence that such tax is not due in that particular instance,
15if that is claimed to be the fact); the place and date of the
16sale; a sufficient identification of the property sold; such
17other information as is required in Section 5-402 of the
18Illinois Vehicle Code, and such other information as the
19Department may reasonably require.
20    The transaction reporting return in the case of watercraft
21or aircraft must show the name and address of the seller; the
22name and address of the purchaser; the amount of the selling
23price including the amount allowed by the retailer for
24traded-in property, if any; the amount allowed by the retailer
25for the traded-in tangible personal property, if any, to the
26extent to which Section 1 of this Act allows an exemption for

 

 

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1the value of traded-in property; the balance payable after
2deducting such trade-in allowance from the total selling
3price; the amount of tax due from the retailer with respect to
4such transaction; the amount of tax collected from the
5purchaser by the retailer on such transaction (or satisfactory
6evidence that such tax is not due in that particular instance,
7if that is claimed to be the fact); the place and date of the
8sale, a sufficient identification of the property sold, and
9such other information as the Department may reasonably
10require.
11    Such transaction reporting return shall be filed not later
12than 20 days after the day of delivery of the item that is
13being sold, but may be filed by the retailer at any time sooner
14than that if he chooses to do so. The transaction reporting
15return and tax remittance or proof of exemption from the
16Illinois use tax may be transmitted to the Department by way of
17the State agency with which, or State officer with whom the
18tangible personal property must be titled or registered (if
19titling or registration is required) if the Department and
20such agency or State officer determine that this procedure
21will expedite the processing of applications for title or
22registration.
23    With each such transaction reporting return, the retailer
24shall remit the proper amount of tax due (or shall submit
25satisfactory evidence that the sale is not taxable if that is
26the case), to the Department or its agents, whereupon the

 

 

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1Department shall issue, in the purchaser's name, a use tax
2receipt (or a certificate of exemption if the Department is
3satisfied that the particular sale is tax exempt) which such
4purchaser may submit to the agency with which, or State
5officer with whom, he must title or register the tangible
6personal property that is involved (if titling or registration
7is required) in support of such purchaser's application for an
8Illinois certificate or other evidence of title or
9registration to such tangible personal property.
10    No retailer's failure or refusal to remit tax under this
11Act precludes a user, who has paid the proper tax to the
12retailer, from obtaining his certificate of title or other
13evidence of title or registration (if titling or registration
14is required) upon satisfying the Department that such user has
15paid the proper tax (if tax is due) to the retailer. The
16Department shall adopt appropriate rules to carry out the
17mandate of this paragraph.
18    If the user who would otherwise pay tax to the retailer
19wants the transaction reporting return filed and the payment
20of the tax or proof of exemption made to the Department before
21the retailer is willing to take these actions and such user has
22not paid the tax to the retailer, such user may certify to the
23fact of such delay by the retailer and may (upon the Department
24being satisfied of the truth of such certification) transmit
25the information required by the transaction reporting return
26and the remittance for tax or proof of exemption directly to

 

 

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1the Department and obtain his tax receipt or exemption
2determination, in which event the transaction reporting return
3and tax remittance (if a tax payment was required) shall be
4credited by the Department to the proper retailer's account
5with the Department, but without the 2.1% or 1.75% discount
6provided for in this Section being allowed. When the user pays
7the tax directly to the Department, he shall pay the tax in the
8same amount and in the same form in which it would be remitted
9if the tax had been remitted to the Department by the retailer.
10    Refunds made by the seller during the preceding return
11period to purchasers, on account of tangible personal property
12returned to the seller, shall be allowed as a deduction under
13subdivision 5 of his monthly or quarterly return, as the case
14may be, in case the seller had theretofore included the
15receipts from the sale of such tangible personal property in a
16return filed by him and had paid the tax imposed by this Act
17with respect to such receipts.
18    Where the seller is a corporation, the return filed on
19behalf of such corporation shall be signed by the president,
20vice-president, secretary, or treasurer or by the properly
21accredited agent of such corporation.
22    Where the seller is a limited liability company, the
23return filed on behalf of the limited liability company shall
24be signed by a manager, member, or properly accredited agent
25of the limited liability company.
26    Except as provided in this Section, the retailer filing

 

 

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1the return under this Section shall, at the time of filing such
2return, pay to the Department the amount of tax imposed by this
3Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
4on and after January 1, 1990, or $5 per calendar year,
5whichever is greater, which is allowed to reimburse the
6retailer for the expenses incurred in keeping records,
7preparing and filing returns, remitting the tax and supplying
8data to the Department on request. On and after January 1,
92021, a certified service provider, as defined in the Leveling
10the Playing Field for Illinois Retail Act, filing the return
11under this Section on behalf of a remote retailer shall, at the
12time of such return, pay to the Department the amount of tax
13imposed by this Act less a discount of 1.75%. A remote retailer
14using a certified service provider to file a return on its
15behalf, as provided in the Leveling the Playing Field for
16Illinois Retail Act, is not eligible for the discount. When
17determining the discount allowed under this Section, retailers
18shall include the amount of tax that would have been due at the
191% rate but for the 0% rate imposed under Public Act 102-700.
20When determining the discount allowed under this Section,
21retailers shall include the amount of tax that would have been
22due at the 6.25% rate but for the 1.25% rate imposed on sales
23tax holiday items under Public Act 102-700. The discount under
24this Section is not allowed for the 1.25% portion of taxes paid
25on aviation fuel that is subject to the revenue use
26requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. Any

 

 

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1prepayment made pursuant to Section 2d of this Act shall be
2included in the amount on which such 2.1% or 1.75% discount is
3computed. In the case of retailers who report and pay the tax
4on a transaction by transaction basis, as provided in this
5Section, such discount shall be taken with each such tax
6remittance instead of when such retailer files his periodic
7return. The discount allowed under this Section is allowed
8only for returns that are filed in the manner required by this
9Act. The Department may disallow the discount for retailers
10whose certificate of registration is revoked at the time the
11return is filed, but only if the Department's decision to
12revoke the certificate of registration has become final.
13    Before October 1, 2000, if the taxpayer's average monthly
14tax liability to the Department under this Act, the Use Tax
15Act, the Service Occupation Tax Act, and the Service Use Tax
16Act, excluding any liability for prepaid sales tax to be
17remitted in accordance with Section 2d of this Act, was
18$10,000 or more during the preceding 4 complete calendar
19quarters, he shall file a return with the Department each
20month by the 20th day of the month next following the month
21during which such tax liability is incurred and shall make
22payments to the Department on or before the 7th, 15th, 22nd and
23last day of the month during which such liability is incurred.
24On and after October 1, 2000, if the taxpayer's average
25monthly tax liability to the Department under this Act, the
26Use Tax Act, the Service Occupation Tax Act, and the Service

 

 

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1Use Tax Act, excluding any liability for prepaid sales tax to
2be remitted in accordance with Section 2d of this Act, was
3$20,000 or more during the preceding 4 complete calendar
4quarters, he shall file a return with the Department each
5month by the 20th day of the month next following the month
6during which such tax liability is incurred and shall make
7payment to the Department on or before the 7th, 15th, 22nd and
8last day of the month during which such liability is incurred.
9If the month during which such tax liability is incurred began
10prior to January 1, 1985, each payment shall be in an amount
11equal to 1/4 of the taxpayer's actual liability for the month
12or an amount set by the Department not to exceed 1/4 of the
13average monthly liability of the taxpayer to the Department
14for the preceding 4 complete calendar quarters (excluding the
15month of highest liability and the month of lowest liability
16in such 4 quarter period). If the month during which such tax
17liability is incurred begins on or after January 1, 1985 and
18prior to January 1, 1987, each payment shall be in an amount
19equal to 22.5% of the taxpayer's actual liability for the
20month or 27.5% of the taxpayer's liability for the same
21calendar month of the preceding year. If the month during
22which such tax liability is incurred begins on or after
23January 1, 1987 and prior to January 1, 1988, each payment
24shall be in an amount equal to 22.5% of the taxpayer's actual
25liability for the month or 26.25% of the taxpayer's liability
26for the same calendar month of the preceding year. If the month

 

 

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1during which such tax liability is incurred begins on or after
2January 1, 1988, and prior to January 1, 1989, or begins on or
3after January 1, 1996, each payment shall be in an amount equal
4to 22.5% of the taxpayer's actual liability for the month or
525% of the taxpayer's liability for the same calendar month of
6the preceding year. If the month during which such tax
7liability is incurred begins on or after January 1, 1989, and
8prior to January 1, 1996, each payment shall be in an amount
9equal to 22.5% of the taxpayer's actual liability for the
10month or 25% of the taxpayer's liability for the same calendar
11month of the preceding year or 100% of the taxpayer's actual
12liability for the quarter monthly reporting period. The amount
13of such quarter monthly payments shall be credited against the
14final tax liability of the taxpayer's return for that month.
15Before October 1, 2000, once applicable, the requirement of
16the making of quarter monthly payments to the Department by
17taxpayers having an average monthly tax liability of $10,000
18or more as determined in the manner provided above shall
19continue until such taxpayer's average monthly liability to
20the Department during the preceding 4 complete calendar
21quarters (excluding the month of highest liability and the
22month of lowest liability) is less than $9,000, or until such
23taxpayer's average monthly liability to the Department as
24computed for each calendar quarter of the 4 preceding complete
25calendar quarter period is less than $10,000. However, if a
26taxpayer can show the Department that a substantial change in

 

 

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1the taxpayer's business has occurred which causes the taxpayer
2to anticipate that his average monthly tax liability for the
3reasonably foreseeable future will fall below the $10,000
4threshold stated above, then such taxpayer may petition the
5Department for a change in such taxpayer's reporting status.
6On and after October 1, 2000, once applicable, the requirement
7of the making of quarter monthly payments to the Department by
8taxpayers having an average monthly tax liability of $20,000
9or more as determined in the manner provided above shall
10continue until such taxpayer's average monthly liability to
11the Department during the preceding 4 complete calendar
12quarters (excluding the month of highest liability and the
13month of lowest liability) is less than $19,000 or until such
14taxpayer's average monthly liability to the Department as
15computed for each calendar quarter of the 4 preceding complete
16calendar quarter period is less than $20,000. However, if a
17taxpayer can show the Department that a substantial change in
18the taxpayer's business has occurred which causes the taxpayer
19to anticipate that his average monthly tax liability for the
20reasonably foreseeable future will fall below the $20,000
21threshold stated above, then such taxpayer may petition the
22Department for a change in such taxpayer's reporting status.
23The Department shall change such taxpayer's reporting status
24unless it finds that such change is seasonal in nature and not
25likely to be long term. Quarter monthly payment status shall
26be determined under this paragraph as if the rate reduction to

 

 

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10% in Public Act 102-700 on food for human consumption that is
2to be consumed off the premises where it is sold (other than
3alcoholic beverages, food consisting of or infused with adult
4use cannabis, soft drinks, and food that has been prepared for
5immediate consumption) had not occurred. For quarter monthly
6payments due under this paragraph on or after July 1, 2023 and
7through June 30, 2024, "25% of the taxpayer's liability for
8the same calendar month of the preceding year" shall be
9determined as if the rate reduction to 0% in Public Act 102-700
10had not occurred. Quarter monthly payment status shall be
11determined under this paragraph as if the rate reduction to
121.25% in Public Act 102-700 on sales tax holiday items had not
13occurred. For quarter monthly payments due on or after July 1,
142023 and through June 30, 2024, "25% of the taxpayer's
15liability for the same calendar month of the preceding year"
16shall be determined as if the rate reduction to 1.25% in Public
17Act 102-700 on sales tax holiday items had not occurred. If any
18such quarter monthly payment is not paid at the time or in the
19amount required by this Section, then the taxpayer shall be
20liable for penalties and interest on the difference between
21the minimum amount due as a payment and the amount of such
22quarter monthly payment actually and timely paid, except
23insofar as the taxpayer has previously made payments for that
24month to the Department in excess of the minimum payments
25previously due as provided in this Section. The Department
26shall make reasonable rules and regulations to govern the

 

 

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1quarter monthly payment amount and quarter monthly payment
2dates for taxpayers who file on other than a calendar monthly
3basis.
4    The provisions of this paragraph apply before October 1,
52001. Without regard to whether a taxpayer is required to make
6quarter monthly payments as specified above, any taxpayer who
7is required by Section 2d of this Act to collect and remit
8prepaid taxes and has collected prepaid taxes which average in
9excess of $25,000 per month during the preceding 2 complete
10calendar quarters, shall file a return with the Department as
11required by Section 2f and shall make payments to the
12Department on or before the 7th, 15th, 22nd and last day of the
13month during which such liability is incurred. If the month
14during which such tax liability is incurred began prior to
15September 1, 1985 (the effective date of Public Act 84-221),
16each payment shall be in an amount not less than 22.5% of the
17taxpayer's actual liability under Section 2d. If the month
18during which such tax liability is incurred begins on or after
19January 1, 1986, each payment shall be in an amount equal to
2022.5% of the taxpayer's actual liability for the month or
2127.5% of the taxpayer's liability for the same calendar month
22of the preceding calendar year. If the month during which such
23tax liability is incurred begins on or after January 1, 1987,
24each payment shall be in an amount equal to 22.5% of the
25taxpayer's actual liability for the month or 26.25% of the
26taxpayer's liability for the same calendar month of the

 

 

HB4655- 209 -LRB103 36446 HLH 67754 b

1preceding year. The amount of such quarter monthly payments
2shall be credited against the final tax liability of the
3taxpayer's return for that month filed under this Section or
4Section 2f, as the case may be. Once applicable, the
5requirement of the making of quarter monthly payments to the
6Department pursuant to this paragraph shall continue until
7such taxpayer's average monthly prepaid tax collections during
8the preceding 2 complete calendar quarters is $25,000 or less.
9If any such quarter monthly payment is not paid at the time or
10in the amount required, the taxpayer shall be liable for
11penalties and interest on such difference, except insofar as
12the taxpayer has previously made payments for that month in
13excess of the minimum payments previously due.
14    The provisions of this paragraph apply on and after
15October 1, 2001. Without regard to whether a taxpayer is
16required to make quarter monthly payments as specified above,
17any taxpayer who is required by Section 2d of this Act to
18collect and remit prepaid taxes and has collected prepaid
19taxes that average in excess of $20,000 per month during the
20preceding 4 complete calendar quarters shall file a return
21with the Department as required by Section 2f and shall make
22payments to the Department on or before the 7th, 15th, 22nd,
23and last day of the month during which the liability is
24incurred. Each payment shall be in an amount equal to 22.5% of
25the taxpayer's actual liability for the month or 25% of the
26taxpayer's liability for the same calendar month of the

 

 

HB4655- 210 -LRB103 36446 HLH 67754 b

1preceding year. The amount of the quarter monthly payments
2shall be credited against the final tax liability of the
3taxpayer's return for that month filed under this Section or
4Section 2f, as the case may be. Once applicable, the
5requirement of the making of quarter monthly payments to the
6Department pursuant to this paragraph shall continue until the
7taxpayer's average monthly prepaid tax collections during the
8preceding 4 complete calendar quarters (excluding the month of
9highest liability and the month of lowest liability) is less
10than $19,000 or until such taxpayer's average monthly
11liability to the Department as computed for each calendar
12quarter of the 4 preceding complete calendar quarters is less
13than $20,000. If any such quarter monthly payment is not paid
14at the time or in the amount required, the taxpayer shall be
15liable for penalties and interest on such difference, except
16insofar as the taxpayer has previously made payments for that
17month in excess of the minimum payments previously due.
18    If any payment provided for in this Section exceeds the
19taxpayer's liabilities under this Act, the Use Tax Act, the
20Service Occupation Tax Act, and the Service Use Tax Act, as
21shown on an original monthly return, the Department shall, if
22requested by the taxpayer, issue to the taxpayer a credit
23memorandum no later than 30 days after the date of payment. The
24credit evidenced by such credit memorandum may be assigned by
25the taxpayer to a similar taxpayer under this Act, the Use Tax
26Act, the Service Occupation Tax Act, or the Service Use Tax

 

 

HB4655- 211 -LRB103 36446 HLH 67754 b

1Act, in accordance with reasonable rules and regulations to be
2prescribed by the Department. If no such request is made, the
3taxpayer may credit such excess payment against tax liability
4subsequently to be remitted to the Department under this Act,
5the Use Tax Act, the Service Occupation Tax Act, or the Service
6Use Tax Act, in accordance with reasonable rules and
7regulations prescribed by the Department. If the Department
8subsequently determined that all or any part of the credit
9taken was not actually due to the taxpayer, the taxpayer's
102.1% and 1.75% vendor's discount shall be reduced by 2.1% or
111.75% of the difference between the credit taken and that
12actually due, and that taxpayer shall be liable for penalties
13and interest on such difference.
14    If a retailer of motor fuel is entitled to a credit under
15Section 2d of this Act which exceeds the taxpayer's liability
16to the Department under this Act for the month for which the
17taxpayer is filing a return, the Department shall issue the
18taxpayer a credit memorandum for the excess.
19    Notwithstanding any provision of law to the contrary,
20beginning on the first day of the first month after the
21Arlington Megaproject is established under Division 22 of
22Article 10 of the Property Tax Code, all taxes collected under
23this Act from persons located within the Arlington Megaproject
24shall be deposited into the Arlington Megaproject
25Infrastructure Fund.
26    Beginning January 1, 1990, each month the Department shall

 

 

HB4655- 212 -LRB103 36446 HLH 67754 b

1pay into the Local Government Tax Fund, a special fund in the
2State treasury which is hereby created, the net revenue
3realized for the preceding month from the 1% tax imposed under
4this Act.
5    Beginning January 1, 1990, each month the Department shall
6pay into the County and Mass Transit District Fund, a special
7fund in the State treasury which is hereby created, 4% of the
8net revenue realized for the preceding month from the 6.25%
9general rate other than aviation fuel sold on or after
10December 1, 2019. This exception for aviation fuel only
11applies for so long as the revenue use requirements of 49
12U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
13    Beginning August 1, 2000, each month the Department shall
14pay into the County and Mass Transit District Fund 20% of the
15net revenue realized for the preceding month from the 1.25%
16rate on the selling price of motor fuel and gasohol. If, in any
17month, the tax on sales tax holiday items, as defined in
18Section 2-8, is imposed at the rate of 1.25%, then the
19Department shall pay 20% of the net revenue realized for that
20month from the 1.25% rate on the selling price of sales tax
21holiday items into the County and Mass Transit District Fund.
22    Beginning January 1, 1990, each month the Department shall
23pay into the Local Government Tax Fund 16% of the net revenue
24realized for the preceding month from the 6.25% general rate
25on the selling price of tangible personal property other than
26aviation fuel sold on or after December 1, 2019. This

 

 

HB4655- 213 -LRB103 36446 HLH 67754 b

1exception for aviation fuel only applies for so long as the
2revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
347133 are binding on the State.
4    For aviation fuel sold on or after December 1, 2019, each
5month the Department shall pay into the State Aviation Program
6Fund 20% of the net revenue realized for the preceding month
7from the 6.25% general rate on the selling price of aviation
8fuel, less an amount estimated by the Department to be
9required for refunds of the 20% portion of the tax on aviation
10fuel under this Act, which amount shall be deposited into the
11Aviation Fuel Sales Tax Refund Fund. The Department shall only
12pay moneys into the State Aviation Program Fund and the
13Aviation Fuel Sales Tax Refund Fund under this Act for so long
14as the revenue use requirements of 49 U.S.C. 47107(b) and 49
15U.S.C. 47133 are binding on the State.
16    Beginning August 1, 2000, each month the Department shall
17pay into the Local Government Tax Fund 80% of the net revenue
18realized for the preceding month from the 1.25% rate on the
19selling price of motor fuel and gasohol. If, in any month, the
20tax on sales tax holiday items, as defined in Section 2-8, is
21imposed at the rate of 1.25%, then the Department shall pay 80%
22of the net revenue realized for that month from the 1.25% rate
23on the selling price of sales tax holiday items into the Local
24Government Tax Fund.
25    Beginning October 1, 2009, each month the Department shall
26pay into the Capital Projects Fund an amount that is equal to

 

 

HB4655- 214 -LRB103 36446 HLH 67754 b

1an amount estimated by the Department to represent 80% of the
2net revenue realized for the preceding month from the sale of
3candy, grooming and hygiene products, and soft drinks that had
4been taxed at a rate of 1% prior to September 1, 2009 but that
5are now taxed at 6.25%.
6    Beginning July 1, 2011, each month the Department shall
7pay into the Clean Air Act Permit Fund 80% of the net revenue
8realized for the preceding month from the 6.25% general rate
9on the selling price of sorbents used in Illinois in the
10process of sorbent injection as used to comply with the
11Environmental Protection Act or the federal Clean Air Act, but
12the total payment into the Clean Air Act Permit Fund under this
13Act and the Use Tax Act shall not exceed $2,000,000 in any
14fiscal year.
15    Beginning July 1, 2013, each month the Department shall
16pay into the Underground Storage Tank Fund from the proceeds
17collected under this Act, the Use Tax Act, the Service Use Tax
18Act, and the Service Occupation Tax Act an amount equal to the
19average monthly deficit in the Underground Storage Tank Fund
20during the prior year, as certified annually by the Illinois
21Environmental Protection Agency, but the total payment into
22the Underground Storage Tank Fund under this Act, the Use Tax
23Act, the Service Use Tax Act, and the Service Occupation Tax
24Act shall not exceed $18,000,000 in any State fiscal year. As
25used in this paragraph, the "average monthly deficit" shall be
26equal to the difference between the average monthly claims for

 

 

HB4655- 215 -LRB103 36446 HLH 67754 b

1payment by the fund and the average monthly revenues deposited
2into the fund, excluding payments made pursuant to this
3paragraph.
4    Beginning July 1, 2015, of the remainder of the moneys
5received by the Department under the Use Tax Act, the Service
6Use Tax Act, the Service Occupation Tax Act, and this Act, each
7month the Department shall deposit $500,000 into the State
8Crime Laboratory Fund.
9    Of the remainder of the moneys received by the Department
10pursuant to this Act, (a) 1.75% thereof shall be paid into the
11Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
12and after July 1, 1989, 3.8% thereof shall be paid into the
13Build Illinois Fund; provided, however, that if in any fiscal
14year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
15may be, of the moneys received by the Department and required
16to be paid into the Build Illinois Fund pursuant to this Act,
17Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
18Act, and Section 9 of the Service Occupation Tax Act, such Acts
19being hereinafter called the "Tax Acts" and such aggregate of
202.2% or 3.8%, as the case may be, of moneys being hereinafter
21called the "Tax Act Amount", and (2) the amount transferred to
22the Build Illinois Fund from the State and Local Sales Tax
23Reform Fund shall be less than the Annual Specified Amount (as
24hereinafter defined), an amount equal to the difference shall
25be immediately paid into the Build Illinois Fund from other
26moneys received by the Department pursuant to the Tax Acts;

 

 

HB4655- 216 -LRB103 36446 HLH 67754 b

1the "Annual Specified Amount" means the amounts specified
2below for fiscal years 1986 through 1993:
3Fiscal YearAnnual Specified Amount
41986$54,800,000
51987$76,650,000
61988$80,480,000
71989$88,510,000
81990$115,330,000
91991$145,470,000
101992$182,730,000
111993$206,520,000;
12and means the Certified Annual Debt Service Requirement (as
13defined in Section 13 of the Build Illinois Bond Act) or the
14Tax Act Amount, whichever is greater, for fiscal year 1994 and
15each fiscal year thereafter; and further provided, that if on
16the last business day of any month the sum of (1) the Tax Act
17Amount required to be deposited into the Build Illinois Bond
18Account in the Build Illinois Fund during such month and (2)
19the amount transferred to the Build Illinois Fund from the
20State and Local Sales Tax Reform Fund shall have been less than
211/12 of the Annual Specified Amount, an amount equal to the
22difference shall be immediately paid into the Build Illinois
23Fund from other moneys received by the Department pursuant to
24the Tax Acts; and, further provided, that in no event shall the
25payments required under the preceding proviso result in
26aggregate payments into the Build Illinois Fund pursuant to

 

 

HB4655- 217 -LRB103 36446 HLH 67754 b

1this clause (b) for any fiscal year in excess of the greater of
2(i) the Tax Act Amount or (ii) the Annual Specified Amount for
3such fiscal year. The amounts payable into the Build Illinois
4Fund under clause (b) of the first sentence in this paragraph
5shall be payable only until such time as the aggregate amount
6on deposit under each trust indenture securing Bonds issued
7and outstanding pursuant to the Build Illinois Bond Act is
8sufficient, taking into account any future investment income,
9to fully provide, in accordance with such indenture, for the
10defeasance of or the payment of the principal of, premium, if
11any, and interest on the Bonds secured by such indenture and on
12any Bonds expected to be issued thereafter and all fees and
13costs payable with respect thereto, all as certified by the
14Director of the Bureau of the Budget (now Governor's Office of
15Management and Budget). If on the last business day of any
16month in which Bonds are outstanding pursuant to the Build
17Illinois Bond Act, the aggregate of moneys deposited in the
18Build Illinois Bond Account in the Build Illinois Fund in such
19month shall be less than the amount required to be transferred
20in such month from the Build Illinois Bond Account to the Build
21Illinois Bond Retirement and Interest Fund pursuant to Section
2213 of the Build Illinois Bond Act, an amount equal to such
23deficiency shall be immediately paid from other moneys
24received by the Department pursuant to the Tax Acts to the
25Build Illinois Fund; provided, however, that any amounts paid
26to the Build Illinois Fund in any fiscal year pursuant to this

 

 

HB4655- 218 -LRB103 36446 HLH 67754 b

1sentence shall be deemed to constitute payments pursuant to
2clause (b) of the first sentence of this paragraph and shall
3reduce the amount otherwise payable for such fiscal year
4pursuant to that clause (b). The moneys received by the
5Department pursuant to this Act and required to be deposited
6into the Build Illinois Fund are subject to the pledge, claim
7and charge set forth in Section 12 of the Build Illinois Bond
8Act.
9    Subject to payment of amounts into the Build Illinois Fund
10as provided in the preceding paragraph or in any amendment
11thereto hereafter enacted, the following specified monthly
12installment of the amount requested in the certificate of the
13Chairman of the Metropolitan Pier and Exposition Authority
14provided under Section 8.25f of the State Finance Act, but not
15in excess of sums designated as "Total Deposit", shall be
16deposited in the aggregate from collections under Section 9 of
17the Use Tax Act, Section 9 of the Service Use Tax Act, Section
189 of the Service Occupation Tax Act, and Section 3 of the
19Retailers' Occupation Tax Act into the McCormick Place
20Expansion Project Fund in the specified fiscal years.
21Fiscal YearTotal Deposit
221993         $0
231994 53,000,000
241995 58,000,000
251996 61,000,000
261997 64,000,000

 

 

HB4655- 219 -LRB103 36446 HLH 67754 b

11998 68,000,000
21999 71,000,000
32000 75,000,000
42001 80,000,000
52002 93,000,000
62003 99,000,000
72004103,000,000
82005108,000,000
92006113,000,000
102007119,000,000
112008126,000,000
122009132,000,000
132010139,000,000
142011146,000,000
152012153,000,000
162013161,000,000
172014170,000,000
182015179,000,000
192016189,000,000
202017199,000,000
212018210,000,000
222019221,000,000
232020233,000,000
242021300,000,000
252022300,000,000
262023300,000,000

 

 

HB4655- 220 -LRB103 36446 HLH 67754 b

12024 300,000,000
22025 300,000,000
32026 300,000,000
42027 375,000,000
52028 375,000,000
62029 375,000,000
72030 375,000,000
82031 375,000,000
92032 375,000,000
102033375,000,000
112034375,000,000
122035375,000,000
132036450,000,000
14and
15each fiscal year
16thereafter that bonds
17are outstanding under
18Section 13.2 of the
19Metropolitan Pier and
20Exposition Authority Act,
21but not after fiscal year 2060.
22    Beginning July 20, 1993 and in each month of each fiscal
23year thereafter, one-eighth of the amount requested in the
24certificate of the Chairman of the Metropolitan Pier and
25Exposition Authority for that fiscal year, less the amount
26deposited into the McCormick Place Expansion Project Fund by

 

 

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1the State Treasurer in the respective month under subsection
2(g) of Section 13 of the Metropolitan Pier and Exposition
3Authority Act, plus cumulative deficiencies in the deposits
4required under this Section for previous months and years,
5shall be deposited into the McCormick Place Expansion Project
6Fund, until the full amount requested for the fiscal year, but
7not in excess of the amount specified above as "Total
8Deposit", has been deposited.
9    Subject to payment of amounts into the Capital Projects
10Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
11and the McCormick Place Expansion Project Fund pursuant to the
12preceding paragraphs or in any amendments thereto hereafter
13enacted, for aviation fuel sold on or after December 1, 2019,
14the Department shall each month deposit into the Aviation Fuel
15Sales Tax Refund Fund an amount estimated by the Department to
16be required for refunds of the 80% portion of the tax on
17aviation fuel under this Act. The Department shall only
18deposit moneys into the Aviation Fuel Sales Tax Refund Fund
19under this paragraph for so long as the revenue use
20requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
21binding on the State.
22    Subject to payment of amounts into the Build Illinois Fund
23and the McCormick Place Expansion Project Fund pursuant to the
24preceding paragraphs or in any amendments thereto hereafter
25enacted, beginning July 1, 1993 and ending on September 30,
262013, the Department shall each month pay into the Illinois

 

 

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1Tax Increment Fund 0.27% of 80% of the net revenue realized for
2the preceding month from the 6.25% general rate on the selling
3price of tangible personal property.
4    Subject to payment of amounts into the Build Illinois
5Fund, the McCormick Place Expansion Project Fund, and the
6Illinois Tax Increment Fund pursuant to the preceding
7paragraphs or in any amendments to this Section hereafter
8enacted, beginning on the first day of the first calendar
9month to occur on or after August 26, 2014 (the effective date
10of Public Act 98-1098), each month, from the collections made
11under Section 9 of the Use Tax Act, Section 9 of the Service
12Use Tax Act, Section 9 of the Service Occupation Tax Act, and
13Section 3 of the Retailers' Occupation Tax Act, the Department
14shall pay into the Tax Compliance and Administration Fund, to
15be used, subject to appropriation, to fund additional auditors
16and compliance personnel at the Department of Revenue, an
17amount equal to 1/12 of 5% of 80% of the cash receipts
18collected during the preceding fiscal year by the Audit Bureau
19of the Department under the Use Tax Act, the Service Use Tax
20Act, the Service Occupation Tax Act, the Retailers' Occupation
21Tax Act, and associated local occupation and use taxes
22administered by the Department.
23    Subject to payments of amounts into the Build Illinois
24Fund, the McCormick Place Expansion Project Fund, the Illinois
25Tax Increment Fund, the Energy Infrastructure Fund, and the
26Tax Compliance and Administration Fund as provided in this

 

 

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1Section, beginning on July 1, 2018 the Department shall pay
2each month into the Downstate Public Transportation Fund the
3moneys required to be so paid under Section 2-3 of the
4Downstate Public Transportation Act.
5    Subject to successful execution and delivery of a
6public-private agreement between the public agency and private
7entity and completion of the civic build, beginning on July 1,
82023, of the remainder of the moneys received by the
9Department under the Use Tax Act, the Service Use Tax Act, the
10Service Occupation Tax Act, and this Act, the Department shall
11deposit the following specified deposits in the aggregate from
12collections under the Use Tax Act, the Service Use Tax Act, the
13Service Occupation Tax Act, and the Retailers' Occupation Tax
14Act, as required under Section 8.25g of the State Finance Act
15for distribution consistent with the Public-Private
16Partnership for Civic and Transit Infrastructure Project Act.
17The moneys received by the Department pursuant to this Act and
18required to be deposited into the Civic and Transit
19Infrastructure Fund are subject to the pledge, claim and
20charge set forth in Section 25-55 of the Public-Private
21Partnership for Civic and Transit Infrastructure Project Act.
22As used in this paragraph, "civic build", "private entity",
23"public-private agreement", and "public agency" have the
24meanings provided in Section 25-10 of the Public-Private
25Partnership for Civic and Transit Infrastructure Project Act.
26        Fiscal Year.............................Total Deposit

 

 

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1        2024.....................................$200,000,000
2        2025....................................$206,000,000
3        2026....................................$212,200,000
4        2027....................................$218,500,000
5        2028....................................$225,100,000
6        2029....................................$288,700,000
7        2030....................................$298,900,000
8        2031....................................$309,300,000
9        2032....................................$320,100,000
10        2033....................................$331,200,000
11        2034....................................$341,200,000
12        2035....................................$351,400,000
13        2036....................................$361,900,000
14        2037....................................$372,800,000
15        2038....................................$384,000,000
16        2039....................................$395,500,000
17        2040....................................$407,400,000
18        2041....................................$419,600,000
19        2042....................................$432,200,000
20        2043....................................$445,100,000
21    Beginning July 1, 2021 and until July 1, 2022, subject to
22the payment of amounts into the County and Mass Transit
23District Fund, the Local Government Tax Fund, the Build
24Illinois Fund, the McCormick Place Expansion Project Fund, the
25Illinois Tax Increment Fund, and the Tax Compliance and
26Administration Fund as provided in this Section, the

 

 

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1Department shall pay each month into the Road Fund the amount
2estimated to represent 16% of the net revenue realized from
3the taxes imposed on motor fuel and gasohol. Beginning July 1,
42022 and until July 1, 2023, subject to the payment of amounts
5into the County and Mass Transit District Fund, the Local
6Government Tax Fund, the Build Illinois Fund, the McCormick
7Place Expansion Project Fund, the Illinois Tax Increment Fund,
8and the Tax Compliance and Administration Fund as provided in
9this Section, the Department shall pay each month into the
10Road Fund the amount estimated to represent 32% of the net
11revenue realized from the taxes imposed on motor fuel and
12gasohol. Beginning July 1, 2023 and until July 1, 2024,
13subject to the payment of amounts into the County and Mass
14Transit District Fund, the Local Government Tax Fund, the
15Build Illinois Fund, the McCormick Place Expansion Project
16Fund, the Illinois Tax Increment Fund, and the Tax Compliance
17and Administration Fund as provided in this Section, the
18Department shall pay each month into the Road Fund the amount
19estimated to represent 48% of the net revenue realized from
20the taxes imposed on motor fuel and gasohol. Beginning July 1,
212024 and until July 1, 2025, subject to the payment of amounts
22into the County and Mass Transit District Fund, the Local
23Government Tax Fund, the Build Illinois Fund, the McCormick
24Place Expansion Project Fund, the Illinois Tax Increment Fund,
25and the Tax Compliance and Administration Fund as provided in
26this Section, the Department shall pay each month into the

 

 

HB4655- 226 -LRB103 36446 HLH 67754 b

1Road Fund the amount estimated to represent 64% of the net
2revenue realized from the taxes imposed on motor fuel and
3gasohol. Beginning on July 1, 2025, subject to the payment of
4amounts into the County and Mass Transit District Fund, the
5Local Government Tax Fund, the Build Illinois Fund, the
6McCormick Place Expansion Project Fund, the Illinois Tax
7Increment Fund, and the Tax Compliance and Administration Fund
8as provided in this Section, the Department shall pay each
9month into the Road Fund the amount estimated to represent 80%
10of the net revenue realized from the taxes imposed on motor
11fuel and gasohol. As used in this paragraph "motor fuel" has
12the meaning given to that term in Section 1.1 of the Motor Fuel
13Tax Law, and "gasohol" has the meaning given to that term in
14Section 3-40 of the Use Tax Act.
15    Of the remainder of the moneys received by the Department
16pursuant to this Act, 75% thereof shall be paid into the State
17treasury and 25% shall be reserved in a special account and
18used only for the transfer to the Common School Fund as part of
19the monthly transfer from the General Revenue Fund in
20accordance with Section 8a of the State Finance Act.
21    The Department may, upon separate written notice to a
22taxpayer, require the taxpayer to prepare and file with the
23Department on a form prescribed by the Department within not
24less than 60 days after receipt of the notice an annual
25information return for the tax year specified in the notice.
26Such annual return to the Department shall include a statement

 

 

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1of gross receipts as shown by the retailer's last federal
2Federal income tax return. If the total receipts of the
3business as reported in the federal Federal income tax return
4do not agree with the gross receipts reported to the
5Department of Revenue for the same period, the retailer shall
6attach to his annual return a schedule showing a
7reconciliation of the 2 amounts and the reasons for the
8difference. The retailer's annual return to the Department
9shall also disclose the cost of goods sold by the retailer
10during the year covered by such return, opening and closing
11inventories of such goods for such year, costs of goods used
12from stock or taken from stock and given away by the retailer
13during such year, payroll information of the retailer's
14business during such year and any additional reasonable
15information which the Department deems would be helpful in
16determining the accuracy of the monthly, quarterly, or annual
17returns filed by such retailer as provided for in this
18Section.
19    If the annual information return required by this Section
20is not filed when and as required, the taxpayer shall be liable
21as follows:
22        (i) Until January 1, 1994, the taxpayer shall be
23    liable for a penalty equal to 1/6 of 1% of the tax due from
24    such taxpayer under this Act during the period to be
25    covered by the annual return for each month or fraction of
26    a month until such return is filed as required, the

 

 

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1    penalty to be assessed and collected in the same manner as
2    any other penalty provided for in this Act.
3        (ii) On and after January 1, 1994, the taxpayer shall
4    be liable for a penalty as described in Section 3-4 of the
5    Uniform Penalty and Interest Act.
6    The chief executive officer, proprietor, owner, or highest
7ranking manager shall sign the annual return to certify the
8accuracy of the information contained therein. Any person who
9willfully signs the annual return containing false or
10inaccurate information shall be guilty of perjury and punished
11accordingly. The annual return form prescribed by the
12Department shall include a warning that the person signing the
13return may be liable for perjury.
14    The provisions of this Section concerning the filing of an
15annual information return do not apply to a retailer who is not
16required to file an income tax return with the United States
17Government.
18    As soon as possible after the first day of each month, upon
19certification of the Department of Revenue, the Comptroller
20shall order transferred and the Treasurer shall transfer from
21the General Revenue Fund to the Motor Fuel Tax Fund an amount
22equal to 1.7% of 80% of the net revenue realized under this Act
23for the second preceding month. Beginning April 1, 2000, this
24transfer is no longer required and shall not be made.
25    Net revenue realized for a month shall be the revenue
26collected by the State pursuant to this Act, less the amount

 

 

HB4655- 229 -LRB103 36446 HLH 67754 b

1paid out during that month as refunds to taxpayers for
2overpayment of liability.
3    For greater simplicity of administration, manufacturers,
4importers and wholesalers whose products are sold at retail in
5Illinois by numerous retailers, and who wish to do so, may
6assume the responsibility for accounting and paying to the
7Department all tax accruing under this Act with respect to
8such sales, if the retailers who are affected do not make
9written objection to the Department to this arrangement.
10    Any person who promotes, organizes, or provides retail
11selling space for concessionaires or other types of sellers at
12the Illinois State Fair, DuQuoin State Fair, county fairs,
13local fairs, art shows, flea markets, and similar exhibitions
14or events, including any transient merchant as defined by
15Section 2 of the Transient Merchant Act of 1987, is required to
16file a report with the Department providing the name of the
17merchant's business, the name of the person or persons engaged
18in merchant's business, the permanent address and Illinois
19Retailers Occupation Tax Registration Number of the merchant,
20the dates and location of the event, and other reasonable
21information that the Department may require. The report must
22be filed not later than the 20th day of the month next
23following the month during which the event with retail sales
24was held. Any person who fails to file a report required by
25this Section commits a business offense and is subject to a
26fine not to exceed $250.

 

 

HB4655- 230 -LRB103 36446 HLH 67754 b

1    Any person engaged in the business of selling tangible
2personal property at retail as a concessionaire or other type
3of seller at the Illinois State Fair, county fairs, art shows,
4flea markets, and similar exhibitions or events, or any
5transient merchants, as defined by Section 2 of the Transient
6Merchant Act of 1987, may be required to make a daily report of
7the amount of such sales to the Department and to make a daily
8payment of the full amount of tax due. The Department shall
9impose this requirement when it finds that there is a
10significant risk of loss of revenue to the State at such an
11exhibition or event. Such a finding shall be based on evidence
12that a substantial number of concessionaires or other sellers
13who are not residents of Illinois will be engaging in the
14business of selling tangible personal property at retail at
15the exhibition or event, or other evidence of a significant
16risk of loss of revenue to the State. The Department shall
17notify concessionaires and other sellers affected by the
18imposition of this requirement. In the absence of notification
19by the Department, the concessionaires and other sellers shall
20file their returns as otherwise required in this Section.
21(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60,
22Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
2365-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
241-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363,
25eff. 7-28-23; revised 9-27-23.)
 

 

 

HB4655- 231 -LRB103 36446 HLH 67754 b

1    Section 923. The Hotel Operators' Occupation Tax Act is
2amended by changing Section 6 as follows:
 
3    (35 ILCS 145/6)  (from Ch. 120, par. 481b.36)
4    Sec. 6. Filing of returns and distribution of revenue.
5Except as provided hereinafter in this Section, on or before
6the last day of each calendar month, every person engaged in
7the business of renting, leasing or letting rooms in a hotel in
8this State during the preceding calendar month shall file a
9return with the Department, stating:
10        1. The name of the operator;
11        2. His residence address and the address of his
12    principal place of business and the address of the
13    principal place of business (if that is a different
14    address) from which he engages in the business of renting,
15    leasing or letting rooms in a hotel in this State;
16        3. Total amount of rental receipts received by him
17    during the preceding calendar month from renting, leasing
18    or letting rooms during such preceding calendar month;
19        4. Total amount of rental receipts received by him
20    during the preceding calendar month from renting, leasing
21    or letting rooms to permanent residents during such
22    preceding calendar month;
23        5. Total amount of other exclusions from gross rental
24    receipts allowed by this Act;
25        6. Gross rental receipts which were received by him

 

 

HB4655- 232 -LRB103 36446 HLH 67754 b

1    during the preceding calendar month and upon the basis of
2    which the tax is imposed;
3        7. The amount of tax due;
4        8. Such other reasonable information as the Department
5    may require.
6    If the operator's average monthly tax liability to the
7Department does not exceed $200, the Department may authorize
8his returns to be filed on a quarter annual basis, with the
9return for January, February and March of a given year being
10due by April 30 of such year; with the return for April, May
11and June of a given year being due by July 31 of such year;
12with the return for July, August and September of a given year
13being due by October 31 of such year, and with the return for
14October, November and December of a given year being due by
15January 31 of the following year.
16    If the operator's average monthly tax liability to the
17Department does not exceed $50, the Department may authorize
18his returns to be filed on an annual basis, with the return for
19a given year being due by January 31 of the following year.
20    Such quarter annual and annual returns, as to form and
21substance, shall be subject to the same requirements as
22monthly returns.
23    Notwithstanding any other provision in this Act concerning
24the time within which an operator may file his return, in the
25case of any operator who ceases to engage in a kind of business
26which makes him responsible for filing returns under this Act,

 

 

HB4655- 233 -LRB103 36446 HLH 67754 b

1such operator shall file a final return under this Act with the
2Department not more than 1 month after discontinuing such
3business.
4    Where the same person has more than 1 business registered
5with the Department under separate registrations under this
6Act, such person shall not file each return that is due as a
7single return covering all such registered businesses, but
8shall file separate returns for each such registered business.
9    In his return, the operator shall determine the value of
10any consideration other than money received by him in
11connection with the renting, leasing or letting of rooms in
12the course of his business and he shall include such value in
13his return. Such determination shall be subject to review and
14revision by the Department in the manner hereinafter provided
15for the correction of returns.
16    Where the operator is a corporation, the return filed on
17behalf of such corporation shall be signed by the president,
18vice-president, secretary or treasurer or by the properly
19accredited agent of such corporation.
20    The person filing the return herein provided for shall, at
21the time of filing such return, pay to the Department the
22amount of tax herein imposed. The operator filing the return
23under this Section shall, at the time of filing such return,
24pay to the Department the amount of tax imposed by this Act
25less a discount of 2.1% or $25 per calendar year, whichever is
26greater, which is allowed to reimburse the operator for the

 

 

HB4655- 234 -LRB103 36446 HLH 67754 b

1expenses incurred in keeping records, preparing and filing
2returns, remitting the tax and supplying data to the
3Department on request.
4    If any payment provided for in this Section exceeds the
5operator's liabilities under this Act, as shown on an original
6return, the Department may authorize the operator to credit
7such excess payment against liability subsequently to be
8remitted to the Department under this Act, in accordance with
9reasonable rules adopted by the Department. If the Department
10subsequently determines that all or any part of the credit
11taken was not actually due to the operator, the operator's
12discount shall be reduced by an amount equal to the difference
13between the discount as applied to the credit taken and that
14actually due, and that operator shall be liable for penalties
15and interest on such difference.
16    Notwithstanding any provision of law to the contrary,
17beginning on the first day of the first month after the
18Arlington Megaproject is established under Division 22 of
19Article 10 of the Property Tax Code, all taxes collected under
20this Act from hotels located within the Arlington Megaproject
21shall be deposited into the Arlington Megaproject
22Infrastructure Fund.
23    Of the remaining proceeds, there There shall be deposited
24into the Build Illinois Fund in the State Treasury for each
25State fiscal year 40% of the amount of total net revenue from
26the tax imposed by subsection (a) of Section 3. Of the

 

 

HB4655- 235 -LRB103 36446 HLH 67754 b

1remaining 60%: (i) $5,000,000 shall be deposited into the
2Illinois Sports Facilities Fund and credited to the Subsidy
3Account each fiscal year by making monthly deposits in the
4amount of 1/8 of $5,000,000 plus cumulative deficiencies in
5such deposits for prior months, and (ii) an amount equal to the
6then applicable Advance Amount shall be deposited into the
7Illinois Sports Facilities Fund and credited to the Advance
8Account each fiscal year by making monthly deposits in the
9amount of 1/8 of the then applicable Advance Amount plus any
10cumulative deficiencies in such deposits for prior months.
11(The deposits of the then applicable Advance Amount during
12each fiscal year shall be treated as advances of funds to the
13Illinois Sports Facilities Authority for its corporate
14purposes to the extent paid to the Authority or its trustee and
15shall be repaid into the General Revenue Fund in the State
16Treasury by the State Treasurer on behalf of the Authority
17pursuant to Section 19 of the Illinois Sports Facilities
18Authority Act, as amended. If in any fiscal year the full
19amount of the then applicable Advance Amount is not repaid
20into the General Revenue Fund, then the deficiency shall be
21paid from the amount in the Local Government Distributive Fund
22that would otherwise be allocated to the City of Chicago under
23the State Revenue Sharing Act.)
24    For purposes of the foregoing paragraph, the term "Advance
25Amount" means, for fiscal year 2002, $22,179,000, and for
26subsequent fiscal years through fiscal year 2033, 105.615% of

 

 

HB4655- 236 -LRB103 36446 HLH 67754 b

1the Advance Amount for the immediately preceding fiscal year,
2rounded up to the nearest $1,000.
3    Of the remaining 60% of the amount of total net revenue
4beginning on August 1, 2011 through June 30, 2023, from the tax
5imposed by subsection (a) of Section 3 after all required
6deposits into the Illinois Sports Facilities Fund, an amount
7equal to 8% of the net revenue realized from this Act during
8the preceding month shall be deposited as follows: 18% of such
9amount shall be deposited into the Chicago Travel Industry
10Promotion Fund for the purposes described in subsection (n) of
11Section 5 of the Metropolitan Pier and Exposition Authority
12Act and the remaining 82% of such amount shall be deposited
13into the Local Tourism Fund each month for purposes authorized
14by Section 605-705 of the Department of Commerce and Economic
15Opportunity Law. Beginning on August 1, 2011 and through June
1630, 2023, an amount equal to 4.5% of the net revenue realized
17from this Act during the preceding month shall be deposited as
18follows: 55% of such amount shall be deposited into the
19Chicago Travel Industry Promotion Fund for the purposes
20described in subsection (n) of Section 5 of the Metropolitan
21Pier and Exposition Authority Act and the remaining 45% of
22such amount deposited into the International Tourism Fund for
23the purposes authorized in Section 605-707 of the Department
24of Commerce and Economic Opportunity Law. "Net revenue
25realized" means the revenue collected by the State under this
26Act less the amount paid out as refunds to taxpayers for

 

 

HB4655- 237 -LRB103 36446 HLH 67754 b

1overpayment of liability under this Act.
2    Beginning on July 1, 2023, of the remaining 60% of the
3amount of total net revenue realized from the tax imposed
4under subsection (a) of Section 3, after all required deposits
5into the Illinois Sports Facilities Fund:
6        (1) an amount equal to 8% of the net revenue realized
7    under this Act for the preceding month shall be deposited
8    as follows: 82% to the Local Tourism Fund and 18% to the
9    Chicago Travel Industry Promotion Fund; and
10        (2) an amount equal to 4.5% of the net revenue
11    realized under this Act for the preceding month shall be
12    deposited as follows: 55% to the Chicago Travel Industry
13    Promotion Fund and 45% to the International Tourism Fund.
14    After making all these deposits, any remaining net revenue
15realized from the tax imposed under subsection (a) of Section
163 shall be deposited into the Tourism Promotion Fund in the
17State Treasury. All moneys received by the Department from the
18additional tax imposed under subsection (b) of Section 3 shall
19be deposited into the Build Illinois Fund in the State
20Treasury.
21    The Department may, upon separate written notice to a
22taxpayer, require the taxpayer to prepare and file with the
23Department on a form prescribed by the Department within not
24less than 60 days after receipt of the notice an annual
25information return for the tax year specified in the notice.
26Such annual return to the Department shall include a statement

 

 

HB4655- 238 -LRB103 36446 HLH 67754 b

1of gross receipts as shown by the operator's last State income
2tax return. If the total receipts of the business as reported
3in the State income tax return do not agree with the gross
4receipts reported to the Department for the same period, the
5operator shall attach to his annual information return a
6schedule showing a reconciliation of the 2 amounts and the
7reasons for the difference. The operator's annual information
8return to the Department shall also disclose payroll
9information of the operator's business during the year covered
10by such return and any additional reasonable information which
11the Department deems would be helpful in determining the
12accuracy of the monthly, quarterly or annual tax returns by
13such operator as hereinbefore provided for in this Section.
14    If the annual information return required by this Section
15is not filed when and as required the taxpayer shall be liable
16for a penalty in an amount determined in accordance with
17Section 3-4 of the Uniform Penalty and Interest Act until such
18return is filed as required, the penalty to be assessed and
19collected in the same manner as any other penalty provided for
20in this Act.
21    The chief executive officer, proprietor, owner or highest
22ranking manager shall sign the annual return to certify the
23accuracy of the information contained therein. Any person who
24willfully signs the annual return containing false or
25inaccurate information shall be guilty of perjury and punished
26accordingly. The annual return form prescribed by the

 

 

HB4655- 239 -LRB103 36446 HLH 67754 b

1Department shall include a warning that the person signing the
2return may be liable for perjury.
3    The foregoing portion of this Section concerning the
4filing of an annual information return shall not apply to an
5operator who is not required to file an income tax return with
6the United States Government.
7(Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
 
8    Section 925. The Property Tax Code is amended by adding
9Division 22 to Article 10 as follows:
 
10    (35 ILCS 200/Art. 10 Div. 22 heading new)
11
Division 22. Megaprojects

 
12    (35 ILCS 200/10-900 new)
13    Sec. 10-900. Findings. The State's economy is highly
14vulnerable to other states that have major financial incentive
15programs and competitive tax incentives. Certain businesses
16and commercial operations that generate significant economic
17activity bear a disproportionately high property tax burden
18compared to their impact on government services and compared
19to their positive economic benefits to the State and the local
20economy and their derivative benefits to taxing districts. To
21incentivize the significant capital investment and economic
22activity of certain large-scale businesses and industrial and
23commercial operations, the State finds that a valuation

 

 

HB4655- 240 -LRB103 36446 HLH 67754 b

1procedure for real property taxes on special properties, known
2as megaprojects, will reduce barriers to investment and
3economic activity in Illinois. The General Assembly finds that
4it is in the best interest of Illinois to establish a new
5category of valuation for megaprojects that recognizes their
6complexity and encourages local development at underutilized
7properties.
 
8    (35 ILCS 200/10-910 new)
9    Sec. 10-910. Megaproject Assessment Freeze and Payment
10Law; definitions. This Division 22 may be cited as the
11Megaproject Assessment Freeze and Payment Law.
12    As used in this Division:
13    "Assessment officer" means the chief county assessment
14officer of the county in which the megaproject is located.
15    "Assessment period" means the period beginning on the
16first day of the calendar year after the calendar year in which
17a megaproject is placed in service and ending on the date when
18the megaproject no longer qualifies as a megaproject under
19this Division.
20    "Base tax year" means the tax year prior to the first
21calendar year during which the Department issues a megaproject
22certificate under this Division.
23    "Base year" means:
24        (1) the calendar year prior to the calendar year in
25    which the Department issues the megaproject certificate,

 

 

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1    if the Department issues a megaproject certificate for a
2    project located on the property without granting
3    preliminary approval for the project pursuant to Section
4    10-940; or
5        (2) the calendar year prior to the calendar year in
6    which the Department grants that preliminary approval, if
7    the Department grants preliminary approval pursuant to
8    Section 10-940 for a megaproject located on the property.
9    "Base year valuation" means the assessed value, in the
10base year, of the property comprising the megaproject.
11    "Company" means one or more entities whose aggregate
12investment in the megaproject meets the minimum investment
13required under this Division. "Company" includes a company
14affiliate unless the context clearly indicates otherwise.
15    "Company affiliate" means an entity that joins with or is
16an affiliate of a company and that participates in the
17investment in, or financing of, a megaproject.
18    "Department" means the Department of Revenue.
19    "Eligible costs" means all costs incurred by or on behalf
20of, or allocated to, a company, prior to the Department's
21issuance of the megaproject certificate or during the
22investment period, to create or construct a megaproject.
23"Eligible costs" includes, without limitation:
24        (1) the purchase, site preparation, renovation,
25    rehabilitation, and construction of land, buildings,
26    structures, equipment, and furnishings used for or in the

 

 

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1    megaproject;
2        (2) any goods or services for the megaproject that are
3    purchased and capitalized under generally accepted
4    accounting principles, including any organizational costs
5    and research and development costs incurred in Illinois;
6        (3) capitalized lease costs for land, buildings,
7    structures, and equipment valued at their present value
8    using the interest rate at which the company borrows funds
9    prevailing at the time the company entered into the lease;
10        (4) infrastructure development costs;
11        (5) debt service and project financing costs;
12        (6) noncapitalized research and development costs;
13        (7) job training and education costs;
14        (8) lease and relocation costs; and
15        (9) amounts expended by a company or company affiliate
16    as a nonresponsible party pursuant to a voluntary program
17    of site remediation, including amounts expended to obtain
18    a certification of completion, if completion of
19    remediation is certified by the Illinois Environmental
20    Protection Agency.
21    "Entity" means a sole proprietorship, partnership, firm,
22corporation, limited liability company, association, or other
23business enterprise.
24    "Incentive agreement" means an agreement between a company
25and a local municipality obligating the company to make the
26special payment under this Division, in addition to paying

 

 

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1property taxes, during the incentive period for a megaproject.
2    "Incentive period" means the period beginning on the first
3day of the calendar year after the calendar year in which the
4megaproject is placed in service and each calendar year
5thereafter until the earlier of (i) the expiration or
6termination of the incentive agreement or (ii) the revocation
7of the megaproject certificate.
8    "Inducement resolution" means a resolution adopted by the
9local municipality setting forth the commitment of the local
10municipality to enter into an incentive agreement.
11    "Investment period" means the period ending 7 years after
12the date on which the Department issues the megaproject
13certificate, or such other longer period of time as the local
14municipality and the company may agree to, not to exceed an
15initial period of 10 years.
16    "Local municipality" means the city, village, or
17incorporated town in which the megaproject is located or, if
18the megaproject is located in an unincorporated area, the
19county in which the megaproject is located.
20    "Megaproject" means a project that satisfies the minimum
21investment, investment period, and other requirements of this
22Division.
23    "Megaproject certificate" means a certificate issued by
24the Department that authorizes an assessment freeze as
25provided in this Division.
26    "Minimum investment" means an investment in the

 

 

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1megaproject of at least $500,000,000 in eligible costs within
2the investment period.
3    "Minority person" means a person who is a citizen or
4lawful permanent resident of the United States and who is any
5of the following:
6        (1) American Indian or Alaska Native (a person having
7    origins in any of the original peoples of North and South
8    America, including Central America, and who maintains
9    tribal affiliation or community attachment).
10        (2) Asian (a person having origins in any of the
11    original peoples of the Far East, Southeast Asia, or the
12    Indian subcontinent, including, but not limited to,
13    Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
14    the Philippine Islands, Thailand, and Vietnam).
15        (3) Black or African American (a person having origins
16    in any of the black racial groups of Africa).
17        (4) Hispanic or Latino (a person of Cuban, Mexican,
18    Puerto Rican, South or Central American, or other Spanish
19    culture or origin, regardless of race).
20        (5) Middle Eastern or North African.
21        (6) Native Hawaiian or Other Pacific Islander (a
22    person having origins in any of the original peoples of
23    Hawaii, Guam, Samoa, or other Pacific Islands).
24    "Minority-owned business" means a business that is at
25least 51% owned by one or more minority persons, or in the case
26of a corporation, at least 51% of the stock in which is owned

 

 

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1by one or more minority persons; and the management and daily
2business operations of which are controlled by one or more of
3the minority individuals who own it.
4    "Placed in service" means that construction of the
5megaproject is substantially complete, which may be evidenced
6by issuance of a certificate of occupancy for the megaproject
7by the local municipality or any other governmental body
8having jurisdiction over construction of the megaproject or,
9if no certificate of occupancy is required as to the
10megaproject, commencement of operations at the megaproject
11site.
12    "Project" means modification to or construction on land,
13buildings, and other improvements on the land, including
14water, sewage treatment and disposal facilities, air pollution
15control facilities, and all other machinery, apparatus,
16equipment, office facilities, related infrastructure, and
17furnishings that are considered necessary, suitable, or useful
18by a company, including all such property subject to
19assessment under the Property Tax Code.
20    "Special payment" means the annual amount paid in addition
21to property taxes paid during the incentive period as provided
22in the incentive agreement.
23    "Taxing district" has the meaning set forth in Section
241-150.
25    "Termination date" means the last day of a calendar year
26that is no later than the 23rd year following the first

 

 

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1calendar year in which a megaproject is placed in service. A
2company may apply to the local municipality prior to the
3termination date for an extension of the termination date
4beyond the 23rd year for up to 17 additional years, for a total
5of 40 years. The corporate authorities of the local
6municipality shall approve an extension of the termination
7date by resolution upon a finding of substantial public
8benefit. A copy of the resolution must be delivered to the
9Department within 30 days of the date the resolution was
10adopted. If the incentive agreement is terminated under
11Section 10-937, then the termination date is the date the
12agreement is terminated.
 
13    (35 ILCS 200/10-912 new)
14    Sec. 10-912. Express authorization for megaproject. The
15Department may issue a megaproject certificate for a
16megaproject in the Village of Arlington Heights. The
17megaproject authorized by this Section may be referred to as
18the Arlington Megaproject.
 
19    (35 ILCS 200/10-912.1 new)
20    Sec. 10-912.1. Arlington Megaproject Oversight Board.
21    (a) There is hereby established the Arlington Megaproject
22Oversight Board. As used in this Section, "Megaproject Board"
23means the Arlington Megaproject Oversight Board.
24    (b) The voting members of the Megaproject Board are as

 

 

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1follows:
2        (1) The Mayor of the Village of Arlington Heights or
3    his or her designee, who shall be the chairperson of the
4    Board.
5        (2) The Mayor of the City of Rolling Meadows or his or
6    her designee.
7        (3) The Mayor of the Village of Palatine or his or her
8    designee.
9        (4) The Executive Director of the Salt Creek Rural
10    Park District or his or her designee.
11        (5) The Superintendent of Township High School
12    District 214 or his or her designee.
13        (6) The Superintendent of Township High School
14    District 211 or his or her designee.
15        (7) The Superintendent of Community Consolidated
16    School District 15 or his or her designee.
17    (c) The nonvoting, advisory members of the Megaproject
18Board are as follows:
19        (1) The President of the Cook County Board of
20    Commissioners or his or her designee.
21        (2) The Mayor of the Village of Buffalo Grove or his or
22    her designee.
23        (3) The Mayor of the Village of Elk Grove Village or
24    his or her designee.
25        (4) The Mayor of the Village of Mount Prospect or his
26    or her designee.

 

 

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1        (5) The Mayor of the City of Prospect Heights or his or
2    her designee.
3        (6) The Mayor of the Village of Schaumburg or his or
4    her designee.
5        (7) The Mayor of the Village of Wheeling or his or her
6    designee.
7        (8) The Secretary of Transportation or his or her
8    designee.
9        (9) The Executive Director of the Suburban Bus
10    Division of the Regional Transportation Authority or his
11    or her designee.
12        (10) The Executive Director of the Illinois State Toll
13    Highway Authority or his or her designee.
14        (11) The members of the General Assembly serving
15    Representative Districts 51, 53, 54, 55, 56, 57, and 59
16    and Legislative Districts 26, 27, 28, 29, and 30.
17    (d) The voting members of the Megaproject Board constitute
18a public body that is subject to the Open Meetings Act.
19    (e) Four voting members of the Megaproject Board shall
20constitute a quorum. Actions of the Megaproject Board must
21receive the affirmative vote of at least 4 voting members. The
22Megaproject Board shall determine the times and places of its
23meetings. The voting and nonvoting members of the Megaproject
24Board shall serve without compensation, but they are entitled
25to reimbursement by the Village of Arlington Heights for
26reasonable expenses incurred in the performance of their

 

 

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1official duties.
2    (f) The Arlington Heights Village Clerk shall serve as the
3Secretary of the Megaproject Board.
4    (g) The Village of Arlington Heights shall provide
5administrative and other support to the Megaproject Board.
6    (h) Prior to the Village of Arlington Heights entering
7into, amending, or terminating an incentive agreement pursuant
8to this Division, the incentive agreement, amendment, or
9termination must be approved by resolution of the Megaproject
10Board. The requirement of this subsection is in addition to
11all other requirements of Sections 10-920 and 10-925 of this
12Act.
13    (i) The Megaproject Board may meet periodically at the
14call of the chairperson of the Megaproject Board to conduct
15oversight of the Arlington Megaproject and to provide
16recommendations related to the Arlington Megaproject.
17    (j) In the event the provisions of this Section conflict
18with the provisions of Division 22 of Article 10 of this Act,
19the provisions of this Section shall control.
20    (k) The Village of Arlington Heights may not regulate the
21Arlington Megaproject in a manner inconsistent with this
22Section. This Section is a limitation under subsection (i) of
23Section 6 of Article VII of the Illinois Constitution on the
24concurrent exercise by home rule units of powers and functions
25exercised by the State.
 

 

 

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1    (35 ILCS 200/10-915 new)
2    Sec. 10-915. Valuation during incentive period;
3eligibility.
4    (a) Property certified by the Department as megaproject
5property pursuant to this Division is eligible for an
6assessment freeze, as provided in this Division, eliminating
7from consideration, for assessment purposes during the
8incentive period, the value added to the property by the
9project and limiting the total valuation of the property
10during the incentive period to the base year valuation. If the
11company does not anticipate completing the project within the
12investment period, then the local municipality may approve one
13or more extensions of time to complete the project. However,
14the local municipality may not extend the project for a period
15that exceeds 5 years after the last day of the investment
16period. Unless approved as part of the original incentive
17agreement, the corporate authorities may approve an extension
18under this subsection by resolution, a copy of which must be
19delivered to the Department within 30 days after the date the
20resolution is adopted.
21    (b) To qualify for a megaproject certificate, the company
22must:
23        (1) make the minimum investment in the megaproject
24    during the investment period; minimum investment
25    requirements shall be construed broadly for purposes of
26    this Division;

 

 

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1        (2) enter into an incentive agreement with the local
2    municipality as described in this Division;
3        (3) enter into a project labor agreement with the
4    applicable local building trades council before the
5    commencement of any of the following activities related to
6    the project: demolition; construction; rehabilitation;
7    maintenance; or renovation; the project labor agreement
8    shall remain in effect throughout any relevant incentive
9    period;
10        (4) establish the goal of awarding 20% of the total
11    dollar amount of contracts that are related to the project
12    and are awarded by the company during each calendar year
13    to minority-owned businesses;
14        (5) in order to protect employment opportunities and
15    minimize job displacement, make written offers of
16    employment, and require all vendors and contractors
17    engaged in the post-construction operations to make
18    written offers of employment, to all persons displaced
19    from prior relevant employment as a consequence of the
20    megaproject and to hire those employees who accept
21    employment prior to hiring additional employees; and
22        (6) enter into a labor peace agreement with any bona
23    fide labor organization representing or attempting to
24    represent its post-construction operations employees,
25    including those employees employed by subcontractors or
26    vendors of the company; as used in this paragraph (6),

 

 

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1    "labor peace agreement" means an agreement with any bona
2    fide labor organization that, at a minimum, includes the
3    following to protect the State's proprietary interest:
4            (A) a prohibition on the labor organization from
5        engaging in picketing, work stoppages, boycotts, and
6        any other economic interference with the company's
7        business during the term of the labor agreement; and
8            (B) a provision that both parties will submit to
9        binding arbitration for all outstanding matters not
10        agreed upon within 120 days of the from the date that a
11        labor organization becomes recognized as bargaining
12        representative of the bargaining unit.
13    (c) For purposes of this Division, if a single company
14enters into a financing arrangement of the type described in
15subsection (b) of Section 10-950, the investment in or
16financing of the property by a developer, lessor, financing
17entity, or other third party in accordance with this
18arrangement is considered investment by the company.
19Investment by a related person to the company is considered
20investment by the company.
 
21    (35 ILCS 200/10-920 new)
22    Sec. 10-920. Incentive agreement; assessment freeze for
23megaprojects; incentive period; inducement resolution;
24location of the project; criteria to qualify.
25    (a) To obtain the benefits provided in this Division, the

 

 

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1company shall apply in writing to the local municipality to
2enter into an incentive agreement with the municipality, in
3the form and manner required by the local municipality, and
4shall certify the facts asserted in the application.
5    (b) The corporate authorities of the local municipality,
6prior to entering into an incentive agreement under this
7Section, shall hold a public hearing to consider the
8application. The amount and terms of the proposed special
9payment and the duration of the incentive agreement shall be
10considered at the public hearing.
11    (c) Copies of the completed application shall be provided
12to each taxing district for which property taxes were assessed
13on the property for the immediately preceding tax year. Those
14copies shall be provided at least 30 days prior to the
15scheduled public hearing at which the corporate authorities of
16the local municipality will consider the application.
17    (d) The company and the local municipality shall enter
18into an incentive agreement requiring the special payment
19described in Section 10-925. The corporate authorities of the
20local municipality shall adopt an ordinance approving the
21incentive agreement.
22    (e) If an incentive agreement is not executed within 5
23years after the local municipality's adoption of an inducement
24resolution, expenditures incurred by the company more than 5
25years prior to the execution of the incentive agreement shall
26not qualify as part of the minimum investment.

 

 

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1    (f) To be eligible to enter into an incentive agreement
2under this Division, the company must commit to a project that
3meets the minimum investment set forth in this Division.
 
4    (35 ILCS 200/10-925 new)
5    Sec. 10-925. Contents of incentive agreement.
6    (a) The incentive agreement under Section 10-920 must
7require the company to pay, or be responsible for the payment
8of, an annual special payment to the local municipality,
9beginning with the first tax year for which the assessment
10freeze under this Division is applied to the megaproject. The
11amount of the special payment shall be established by the
12local municipality in the incentive agreement and may be a
13fixed amount for the duration of the incentive period or may be
14subject to adjustment (downward or upward) based on factors
15memorialized in the incentive agreement.
16    (b) The incentive agreement shall obligate the company to
17operate the megaproject at the designated project location for
18a minimum of 20 years.
19    (c) The incentive agreement may contain such other terms
20and conditions as are mutually agreeable to the local
21municipality and the company and are consistent with the
22requirements of this Division, including, without limitation,
23operational and job creation requirements.
24    (d) In addition, all incentive agreements entered into
25pursuant to Section 10-920 must include, as the first portion

 

 

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1of the document, a recapitulation of the remaining contents of
2the document which includes, but is not limited to, the
3following:
4        (1) the legal name of each party to the agreement;
5        (2) the street address of the project and the property
6    subject to the agreement;
7        (3) the agreed minimum investment;
8        (4) the term of the agreement;
9        (5) a schedule showing the amount of the special
10    payment and its calculation for each year of the
11    agreement;
12        (6) a schedule showing the amount to be distributed
13    annually to each affected taxing district, which amount
14    shall be a percentage of the special payment equal to the
15    taxing district's proportionate share of property taxes
16    due and payable for the base tax year;
17        (7) any other feature or aspect of the agreement that
18    may affect the calculation of items (5) and (6) of this
19    subsection; and
20        (8) an identification of the party or parties to the
21    agreement who are responsible for updating the information
22    contained in the summary document.
 
23    (35 ILCS 200/10-930 new)
24    Sec. 10-930. Installment bills; distribution of special
25payments.

 

 

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1    (a) The local municipality shall prepare a bill for each
2installment of the special payment according to the schedule
3set forth in paragraph (5) of subsection (d) of Section
410-925, or as modified pursuant to paragraph (7) of subsection
5(d) of Section 10-925, and that payment must be distributed to
6the affected taxing entities according to the schedule in
7paragraph (6) of subsection (d) of Section 10-925 or as
8modified in paragraph (7) of subsection (d) of Section 10-925.
9    (b) Distribution to taxing districts of the special
10payments associated with a megaproject must be made within 30
11days after receipt by the local municipality of the special
12payment amounts.
13    (c) Misallocations of the distribution of the special
14payments may be corrected by adjusting later distributions,
15but these adjustments must be made in the next succeeding year
16following identification and resolution of the misallocation.
17To the extent that distributions have been made improperly in
18previous years, claims for adjustment must be made within one
19year of the distribution.
 
20    (35 ILCS 200/10-935 new)
21    Sec. 10-935. Use of revenues. A taxing district that
22receives and retains revenues from a special payment under
23this Division may use all or a portion of the revenues for the
24purposes of financing the issuance of revenue bonds.
 

 

 

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1    (35 ILCS 200/10-937 new)
2    Sec. 10-937. Termination of incentive agreement; automatic
3termination; minimum level of investment required to remain
4qualified for assessment freeze.
5    (a) The local municipality and the company may mutually
6agree to terminate the incentive agreement at any time. From
7the date of termination, the megaproject is subject to
8assessment on the basis of the then current fair cash value.
9    (b) An incentive agreement shall be terminated if the
10company fails to satisfy the minimum investment level provided
11in this Division. If the incentive agreement is terminated
12under this subsection, the megaproject is subject to
13assessment on the basis of the then current fair cash value
14beginning in the tax year during which the termination occurs.
15    (c) An incentive agreement shall terminate if, at any
16time, the company no longer has the minimum level of
17investment as provided in this Division, without regard to
18depreciation.
 
19    (35 ILCS 200/10-940 new)
20    Sec. 10-940. Megaproject applications; certification as a
21megaproject and revocation of certification.
22    (a) The Department shall receive applications for
23megaproject certificates under this Division in a form and
24manner provided by the Department by rule. The Department
25shall promptly notify the assessment officer when the

 

 

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1Department receives an application under this Section. The
2Department's rules shall provide that an applicant may request
3preliminary approval of the megaproject before the project
4begins, before the applicant has entered into a fully executed
5incentive agreement with the local municipality, or before the
6project has been placed in service.
7    (b) An applicant for a megaproject certificate under this
8Division must provide evidence to the Department of a fully
9executed incentive agreement between the company and the local
10municipality as described in this Division.
11    (c) An applicant for a megaproject certificate under this
12Division must provide evidence to the Department of a fully
13executed project labor agreement entered into with the
14applicable local building trades council prior to the
15commencement of any demolition, building construction, or
16building renovation at the project. If the demolition,
17building construction, or building renovation begins after the
18application is approved, then the applicant must transmit a
19copy of the fully executed project labor agreement to the
20Department as soon as possible after the agreement is
21executed.
22    (d) An applicant for a megaproject certificate under this
23Division must provide evidence to the Department that the
24company has established the goal of awarding 20% of the total
25dollar amount of contracts awarded during each calendar year
26by the company, that are related to the project, to

 

 

HB4655- 259 -LRB103 36446 HLH 67754 b

1minority-owned businesses.
2    (e) The Department shall approve an application for a
3megaproject certificate if the Department finds that the
4project meets the requirements of this Division.
5    (f) Upon approval of the application, the Department shall
6issue a megaproject certificate to the applicant and transmit
7a copy to the assessment officer. The certificate shall
8identify the property on which the megaproject is located.
9    (g) For each calendar year following issuance of the
10megaproject certificate, until the minimum investment
11requirements have been met and the megaproject has been placed
12in service, the company shall deliver a report to the
13Department on the status of construction or creation of the
14megaproject and the amount of minimum investment made in the
15megaproject during the preceding calendar year. If the
16Department determines, in accordance with the Administrative
17Review Law and the Illinois Administrative Procedure Act, that
18a project for which a certificate has been issued has not met
19the minimum investment requirements of this Division within
20the investment period, the Department shall revoke the
21certificate by written notice to the taxpayer of record and
22transmit a copy of the revocation to the assessment officer.
23    (h) If the local municipality notifies the Department that
24the incentive agreement between the company and the local
25municipality has been terminated, the Department shall revoke
26the certificate by written notice to the taxpayer of record

 

 

HB4655- 260 -LRB103 36446 HLH 67754 b

1and transmit a copy of the revocation to the assessment
2officer.
3    (i) In addition to all other requirements of this Section,
4the Department may issue a megaproject certificate only if the
5megaproject is expressly authorized by Section 10-912.
6    (j) An applicant for a megaproject certificate under this
7Division must provide evidence to the Department of the fully
8executed labor peace agreements entered into with any bona
9fide labor organization representing or attempting to
10represent its post-construction operations employees prior to
11the Department approving an application or granting
12preliminary approval of a megaproject certificate.
 
13    (35 ILCS 200/10-945 new)
14    Sec. 10-945. Computation of valuation.
15    (a) Upon receipt of the megaproject certificate from the
16Department, the assessment officer shall determine the base
17year valuation and shall make a notation on each statement of
18assessment during the assessment period that the valuation of
19the project is based upon the issuance of a megaproject
20certificate.
21    (b) Upon revocation of a megaproject certificate, the
22assessment officer shall compute the assessed valuation of the
23project on the basis of the then current fair cash value of the
24property.
 

 

 

HB4655- 261 -LRB103 36446 HLH 67754 b

1    (35 ILCS 200/10-950 new)
2    Sec. 10-950. Transfers of interest in a megaproject;
3sale-leaseback arrangement; requirements.
4    (a) Subject to the terms of the incentive agreement
5between the company and the local municipality, ownership of
6or any interest in the megaproject and any and all related
7project property, including, without limitation, transfers of
8indirect beneficial interests and equity interests in a
9company owning a megaproject, shall not affect the assessment
10freeze or the validity of the megaproject certificate issued
11under this Division. Notwithstanding the provisions of this
12subsection, the incentive agreement shall be a covenant
13running with the land.
14    (b) A company may enter into lending, financing, security,
15leasing, or similar arrangements, or a succession of such
16arrangements, with a financing entity concerning all or part
17of a project, including, without limitation, a sale-leaseback
18arrangement, equipment lease, build-to-suit lease, synthetic
19lease, defeased tax benefit, or transfer lease, an assignment,
20sublease, or similar arrangement, or succession of those
21arrangements, with one or more financing entities concerning
22all or part of a project, regardless of the identity of the
23income tax or fee owner of the megaproject. Neither the
24original transfer to the financing entity nor the later
25transfer from the financing entity back to the company,
26pursuant to terms in the sale-leaseback agreement, shall

 

 

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1affect the assessment freeze or the validity of the
2megaproject certificate issued under this Division, regardless
3of whether the income tax basis is changed for income tax
4purposes.
5    (c) The Department must receive notice of all transfers
6undertaken with respect to other projects. Notice shall be
7made in writing within 60 days after the transfer, identifying
8each transferee and containing other information required by
9the Department with the appropriate returns. Failure to meet
10this notice requirement does not adversely affect the
11assessment freeze.
 
12    (35 ILCS 200/10-955 new)
13    Sec. 10-955. Minimum investment by company affiliates. To
14be eligible for the benefits of this Division, a company must
15invest the minimum investment. Investments by company
16affiliates during the investment period may be applied toward
17the minimum investment under this Division regardless of
18whether the company affiliate was part of the project. To
19qualify for the assessment freeze, the minimum investments
20must be located at the megaproject.
 
21    (35 ILCS 200/10-960 new)
22    Sec. 10-960. Projects to be valued at fair cash value for
23purposes of bonded indebtedness and limitations on property
24tax extensions. Projects to which an assessment freeze applies

 

 

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1pursuant to this Division shall be valued at their fair cash
2value for purposes of calculating a municipality's general
3obligation bond limits and a taxing district's limitation on
4tax extensions.
 
5    (35 ILCS 200/10-965 new)
6    Sec. 10-965. Abatements. Any taxing district, upon a
7majority vote of its governing authority, may, after the
8determination of the assessed valuation as set forth in this
9Division, order the clerk of the appropriate municipality or
10county to abate any portion of real property taxes otherwise
11levied or extended by the taxing district on a megaproject.
 
12    (35 ILCS 200/10-970 new)
13    Sec. 10-970. Filing of returns, contracts, and other
14information; due date of payments and returns.
15    (a) The company and the local municipality shall file
16notices, reports, and other information as required by the
17Department.
18    (b) Special payments are due at the same time as property
19tax payments and property tax returns are due for the
20megaproject property.
21    (c) Failure to make a timely special payment results in
22the assessment of penalties as if the payment were a
23delinquent property tax payment or return.
24    (d) Within 30 days after the date of execution of an

 

 

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1incentive agreement, a copy of the incentive agreement must be
2filed with the Department, the county assessor, and the county
3auditor for the county in which the megaproject is located.
 
4    (35 ILCS 200/10-980 new)
5    Sec. 10-980. Rules. The Department may issue rulings and
6adopt rules as necessary to carry out the purpose of this
7Division.
 
8    (35 ILCS 200/10-990 new)
9    Sec. 10-990. Invalidity. If all or any part of this
10Division is determined to be unconstitutional or otherwise
11unenforceable by a court of competent jurisdiction, a company
12has 180 days from the date of the determination to transfer
13title to a megaproject to an authorized economic development
14authority, which may qualify for property tax assessment under
15this Division or which may be exempt from property taxes.
 
16    Section 930. The Sports Wagering Act is amended by
17changing Section 25-90 as follows:
 
18    (230 ILCS 45/25-90)
19    Sec. 25-90. Tax; Sports Wagering Fund.
20    (a) For the privilege of holding a license to operate
21sports wagering under this Act, this State shall impose and
22collect 15% of a master sports wagering licensee's adjusted

 

 

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1gross sports wagering receipts from sports wagering. The
2accrual method of accounting shall be used for purposes of
3calculating the amount of the tax owed by the licensee.
4    The taxes levied and collected pursuant to this subsection
5(a) are due and payable to the Board no later than the last day
6of the month following the calendar month in which the
7adjusted gross sports wagering receipts were received and the
8tax obligation was accrued.
9    (a-5) In addition to the tax imposed under subsection (a)
10of this Section, for the privilege of holding a license to
11operate sports wagering under this Act, the State shall impose
12and collect 2% of the adjusted gross receipts from sports
13wagers that are placed within a home rule county with a
14population of over 3,000,000 inhabitants, which shall be paid,
15subject to appropriation from the General Assembly, from the
16Sports Wagering Fund to that home rule county for the purpose
17of enhancing the county's criminal justice system.
18    (a-6) In addition to the taxes imposed under subsections
19(a) and (a-5) of this Section, the State shall impose and
20collect a tax equal to 3% of the adjusted gross sports wagering
21receipts from sports wagers that are placed within the
22Arlington Megaproject established under Division 22 of Article
2310 of the Property Tax Code. All moneys collected under this
24subsection (a-6) shall be deposited into the Arlington
25Megaproject Infrastructure Fund.
26    (b) The Sports Wagering Fund is hereby created as a

 

 

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1special fund in the State treasury. Except as otherwise
2provided in this Act, all moneys collected under this Act by
3the Board shall be deposited into the Sports Wagering Fund. On
4the 25th of each month, any moneys remaining in the Sports
5Wagering Fund in excess of the anticipated monthly
6expenditures from the Fund through the next month, as
7certified by the Board to the State Comptroller, shall be
8transferred by the State Comptroller and the State Treasurer
9to the Capital Projects Fund.
10    (c) Beginning with July 2021, and on a monthly basis
11thereafter, the Board shall certify to the State Comptroller
12the amount of license fees collected in the month for initial
13licenses issued under this Act, except for occupational
14licenses. As soon after certification as practicable, the
15State Comptroller shall direct and the State Treasurer shall
16transfer the certified amount from the Sports Wagering Fund to
17the Rebuild Illinois Projects Fund.
18(Source: P.A. 101-31, eff. 6-28-19; 102-16, eff. 6-17-21;
19102-687, eff. 12-17-21.)
 
20    Section 935. The Liquor Control Act of 1934 is amended by
21adding Section 8-15 as follows:
 
22    (235 ILCS 5/8-15 new)
23    Sec. 8-15. Arlington Megaproject. Notwithstanding any
24provision of law to the contrary, beginning on the first day of

 

 

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1the first month after the Arlington Megaproject is established
2under Division 22 of Article 10 of the Property Tax Code, all
3taxes collected under this Act from persons located within the
4Arlington Megaproject shall be deposited into the Arlington
5Megaproject Infrastructure Fund.
 
6    Section 997. Severability. The provisions of this Act are
7severable under Section 1.31 of the Statute on Statutes.
 
8    Section 999. Effective date. This Act takes effect upon
9becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    New Act
4    30 ILCS 105/5.1015 new
5    30 ILCS 105/6z-140 new
6    35 ILCS 105/3-5
7    35 ILCS 105/9from Ch. 120, par. 439.9
8    35 ILCS 110/3-5
9    35 ILCS 110/9from Ch. 120, par. 439.39
10    35 ILCS 115/3-5
11    35 ILCS 115/9from Ch. 120, par. 439.109
12    35 ILCS 120/2-5
13    35 ILCS 120/3from Ch. 120, par. 442
14    35 ILCS 145/6from Ch. 120, par. 481b.36
15    35 ILCS 200/Art. 10 Div.
16    22 heading new
17    35 ILCS 200/10-900 new
18    35 ILCS 200/10-910 new
19    35 ILCS 200/10-912 new
20    35 ILCS 200/10-912.1 new
21    35 ILCS 200/10-915 new
22    35 ILCS 200/10-920 new
23    35 ILCS 200/10-925 new
24    35 ILCS 200/10-930 new
25    35 ILCS 200/10-935 new

 

 

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1    35 ILCS 200/10-937 new
2    35 ILCS 200/10-940 new
3    35 ILCS 200/10-945 new
4    35 ILCS 200/10-950 new
5    35 ILCS 200/10-955 new
6    35 ILCS 200/10-960 new
7    35 ILCS 200/10-965 new
8    35 ILCS 200/10-970 new
9    35 ILCS 200/10-980 new
10    35 ILCS 200/10-990 new
11    230 ILCS 45/25-90
12    235 ILCS 5/8-15 new